Bank of Baroda and Federal Bank - in the red. Shares of AU Small Finance Bank, Bandhan Bank, Punjab National Bank, HDFC Bank, Kotak Mahindra Bank and ICICI Bank were among the top gainers in the Nifty Bank index at that time. The Nifty Bank index has been volatile of late.
On a weekly scale, the banking index has been in the red for the last three weeks. For the current month so far, the index is down about 5 per cent while the benchmark Nifty 50 is almost flat. Also Read: Rail stocks RVNL, IRFC, IRCON jump up to 15% to new highs; soar up to 75% just in Jan ahead of Budget A weaker-than-expected December quarter earnings of HDFC Bank triggered a sharp selloff in the share price of the company, dragging the banking index down.
Following the Q3 result of HDFC Bank, the Nifty Bank index fell 4.28 per cent on January 17. Also Read: HDFC Bank recovers after 11% fall in last 2 sessions; what should investors do now? Mandar Bhojane, an equity research analyst at Choice Broking, pointed out that on the daily chart, the banking index reached a low of 45,430.70 and initiated a reversal from this bottom level. Despite this, Bank Nifty is currently maintaining support at the 45,500 level, indicating a degree of price stability.
Bhojane added that on the weekly timeframe, Bank Nifty has successfully closed above the support of the 20-day exponential moving average (EMA). Consequently, there is potential for further upward movement towards the next resistance at 47,000 levels, which represents the 50 per cent Fibonacci retracement level. Also Read: Paytm share price rises over 3% after Q3 result; what should investors do? "It is worth noting that Bank Nifty has shown more weakness than the Nifty 50.
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