Notably, the India VIX, the fear gauge index, spiked more than 6 per cent to 12.5 on Friday after Oil prices spiked to near $110 a barrel, on track to end the week at over $100 a barrel for the first time since mid-May. Similarly, the US 10-year yield surged near 5 per cent amid market concerns. Meanwhile, the Indian government’s 10-year bond yield surged above 7 per cent. As of 09:54 AM, the index was down 630.35 points or 1.12 per cent at 55,841.60 with all 14 counters trading in the red. Nifty Bank index has fallen 2.47 per cent over the past week and is now down nearly 10 per cent from its all-time high.
AU Small Finance Bank and IndusInd Bank were the biggest losers in the Bank Nifty, with their shares falling over 2 per cent, each. HDFC Bank also declined around 2 per cent, while Union Bank and Canara Bank fell over 2 per cent each.
Among large banks, State Bank of India (SBI) declined over 1 per cent; ICICI Bank fell nearly 1 per cent; Kotak Mahindra Bank also dropped around 1 per cent and Axis Bank declined nearly 1 per cent.
Vipin Kumar, AVP research at Globe Capital Market, noted that the Bank Nifty index has breached the trendline support of its three-month-long consolidation zone with a downside gap, triggered by Brent crude surging toward the $108 level. “Going forward, 55,500 serves as the immediate crucial support. A decisive close below this level will further dampen market sentiment, potentially dragging the index toward the 54,500–54,000 range in the near term,” he said.
Kumar added that on the upside, any technical bounce toward the 56,600 spot level will act as immediate overhead resistance. Until Bank Nifty comfortably reclaims 56,600 on a daily closing basis, the overall market bias remains 'sell-on-rise'.
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