Home / Business and Economy / Banking Stocks Tumble: Nifty Bank Plunges 370 Points
Banking Stocks Tumble: Nifty Bank Plunges 370 Points
1 Jun
Summary
- Nifty Bank index fell over 370 points, underperforming Nifty 50.
- PSU bank stocks, including Union Bank and PNB, led the sharp decline.
- Analysts point to consolidation, awaiting a breakout for the next market move.
Banking stocks experienced a sharp decline on Monday, with the Nifty Bank index plummeting over 370 points, significantly underperforming the Nifty 50. The downturn was led by public sector banks, including substantial drops in shares of Union Bank of India, Punjab National Bank, and Canara Bank.
Analysts are closely observing technical indicators for the Nifty Bank index. Bajaj Broking indicated a bearish signal, with the index closing below the 20-day EMA. They anticipate consolidation within the 52,500 to 56,000 range, with a breakout or breakdown expected to determine the next directional move.
Further analysis from Axis Securities highlighted 54,513 as a trend-deciding level. Trading above this could lead to gains, while falling below it might trigger profit booking and a correction towards 53,842. Ventura's Bharat K Gala maintained a negative weekly outlook, advising traders to view levels around 53,930 as buying opportunities as long as the index stays below 54,116.
