Bank Nifty Slips After Record High, Ending 2-Day Winning Run; Set For Longest Weekly Gain Since June

Bank Nifty lost momentum on November 21, ending a two-session winning streak as investors booked profits at elevated levels. The pullback came after the index notched fresh record highs for consecutive

sessions, supported by upbeat sentiment and robust earnings. Earlier in the day, the index dropped nearly 0.9 percent to 58,833, with analysts flagging key levels to monitor.

Despite Friday’s decline, Bank Nifty remains firmly positive on a weekly basis, up more than 0.5 percent so far. It has closed higher for three straight weeks since October 27, and if it sustains gains through the week, it will mark the index’s longest winning run since early June. Strong performances from major constituents, including HDFC Bank and State Bank of India, have underpinned the recent rally. On Thursday, the index scaled a fresh lifetime peak of 59,440.10, outperforming benchmark indices that remain slightly below their all-time highs.

Analysts told Reuters they expect banks’ credit growth to improve as demand strengthens following the RBI’s rate cuts. Stable asset quality, relatively attractive bank valuations compared to other sectors, and moderating foreign outflows are also lending support. So far in 2025, Nifty Bank has gained nearly 16 percent, outpacing the Nifty 50’s 10 percent rise.

Among today’s movers, Canara Bank was the top loser, slipping over 1 percent to ₹146.37 as of 1:10 pm. ICICI Bank, Punjab National Bank, Bank of Baroda, HDFC Bank and Axis Bank declined between 0.5 percent and 1 percent, while SBI and AU Small Finance Bank traded slightly lower. IndusInd Bank bucked the trend, jumping more than 2.5 percent to ₹850.40. Kotak Mahindra Bank, IDFC First Bank and Federal Bank also recorded marginal gains. The Nifty PSU Bank and Nifty Private Bank indices were down 0.99 percent and 0.31 percent, respectively, around 1:40 pm.

On the technical front, PL Capital said frontline names such as HDFC Bank, ICICI Bank and Axis Bank are showing strength that could propel the index towards 60,500 and 63,000. The brokerage highlighted key support at 57,200—near the 50-EMA—to maintain the broader uptrend, while immediate supports lie at 59,169 and 58,990. Resistance levels are positioned at 59,483 and 59,619. Notably, Bank Nifty briefly breached both support levels at its intraday low.

Choice Broking’s Amruta Shinde pegged key support at 59,000–59,200 and resistance at 59,500–59,700, noting that a breakout beyond this band could accelerate the uptrend. Bajaj Broking added that recent candles reflect strong underlying demand, with shallow dips being absorbed quickly. The index remains comfortably above key short-term moving averages, and is likely to test the 59,800–60,000 zone in the near term. Immediate demand is expected around 58,800–58,600 unless that support is breached decisively.

LKP Securities’ Vatsal Bhuva, while maintaining a bullish overall outlook, advised caution following repeated record highs. He noted that Thursday’s small candlestick and an RSI reading of 74 on the daily chart point to near-term caution. Bhuva recommended fresh longs above 59,500 or on dips toward 58,800 for a better risk-reward setup. Heavy put writing has reinforced support at 59,000 on an immediate basis and 58,800 on a positional basis, with resistance seen at 59,500 and 60,000.