Home / Business and Economy / Bank Nifty Declines Amidst PSU Stock Slump
Bank Nifty Declines Amidst PSU Stock Slump
20 Jan
Summary
- Nifty Bank index fell 0.42% to 59,642.70.
- PSU Bank index dropped 1.15% to 8,884.
- Key support is seen at 59,200-58,900, resistance at 60,000.
The Nifty Bank index has extended its decline for a second trading session, following a prior four-day gaining streak. As of 12:45 PM on January 20, 2026, the index was down 0.42 percent, trading at 59,642.70. This downturn was largely influenced by significant drops in PSU bank stocks.
The Nifty PSU Bank index saw a steeper fall, declining approximately 1.15 percent to 8,884. Stocks like Yes Bank and IndusInd Bank were notable losers, each falling around 4 percent. Other major banks such as Canara Bank and Punjab National Bank also experienced declines exceeding 2 percent.
Despite the recent dips, analysts suggest the Bank Nifty maintains a bullish structure, showing relative outperformance. Emkay Global Financial Services indicates that a sustained move above 60,200 could trigger further upside, with strong support expected between 59,200 and 58,900. Axis Securities identifies 60,000 as a critical pivot for the current expiry, with significant support at 59,500 and resistance at 60,000.
Choice Broking noted the index's resilience near 59,800-60,000 but observed indecision around the 60,000 mark. They suggest that a break above 60,000 could reignite short-term bullish sentiment, while a fall below 59,500-59,600 might signal a period of extended consolidation.
