Bank Nifty slips over 600 pts as Monday’s CAS-led rally reverses; Axis Bank, YES Bank, SBI among top losers

Banking stocks witnessed broad-based selling on Tuesday, with the Bank Nifty declining more than 600 points, or 1%, as the index gave back much of the sharp Closing Auction Session (CAS)-driven gains recorded in the previous session.

Meanwhile, benchmark equity indices extended losses for a second consecutive session, ending marginally lower as selling in banking, auto, realty and healthcare stocks weighed on sentiment. The Sensex fell 12.99 points, or 0.02%, to 76,944.28, while the Nifty 50 declined 24.60 points, or 0.10%, to 24,055.80.

Broader markets remained under pressure, with the Nifty MidCap and Nifty SmallCap indices falling 1.39% and 0.23%, respectively.

The Nifty Bank index settled at 57,409.60, down 615.35 points, or 1.06%, from Monday’s close of 58,024.95. The index touched an intraday high of 57,766.25 before slipping to a low of 57,150.70.

Among Bank Nifty constituents, Axis Bank was the biggest loser, falling 3.23%, followed by YES Bank (-3.20%), State Bank of India (-2.41%), IndusInd Bank (-2.36%) and Federal Bank (-2.09%). Union Bank of India declined 1.98%, while IDFC First Bank and ICICI Bank fell 1.24% and 1.10%, respectively.

Other lenders also traded lower, with AU Small Finance Bank declining 0.64% and Bank of Baroda slipping 0.38%.

On the other hand, HDFC Bank rose 0.41%, while Kotak Mahindra Bank gained 1.34% and Punjab National Bank advanced 0.87%.

57,000 key support for Bank Nifty, says analyst

According to Ponmudi R, CEO of Enrich Money, Bank Nifty attempted an early bounce towards 57,800 but failed to sustain the gains, allowing sellers to take control through the rest of the session.

The index is currently trading between its 20-day and 50-day exponential moving averages (EMAs), with the 57,000 psychological mark emerging as the immediate key support. A break below this level could open the way towards 56,800–56,700, he said.

On the upside, the 57,500–57,600 zone, which had earlier acted as support, is now likely to serve as immediate resistance. A sustained move above this range could bring 57,800–58,000 into focus.

“Momentum has turned soft, with the daily RSI slipping to 46.68, below its signal line, while the MACD histogram remains in negative territory,” Ponmudi said, pointing to the sharp reversal from Monday’s highs.