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Informist, Friday, Jun. 13, 2025

MUMBAI – Bank Nifty could remain under pressure next week as the index struggles to find support following a weak close on Friday and rising geopolitical tensions that have rattled market sentiment, analysts said. Analysts believe that unless the index reclaims key resistance levels, the downtrend may continue, especially with signs of profit booking emerging across both private and public sector banks.

The Nifty Bank index fell 1% on Friday to close at 55527.35, with all nine of its constituents ending in the red. State Bank of India led the losses, falling 1.7%, followed by IndusInd Bank and Punjab National Bank, which declined 1.6% and 1.3%, respectively. This sell-off came in tandem with a broader market decline triggered by a spike in crude oil prices after Israel launched a military strike on Iran.

According to CNBC, Israel attacked Iranian nuclear sites under "Operation Rising Lion", targeting scientists and military leaders, including Iran's army chief. Iran responded with a barrage of over 100 drones aimed at Israel, further escalating tensions in the region. Jordan intercepted some of the drones, but fears of a wider conflict have already taken a toll on markets.

Crude oil prices surged over 13% during the day, touching $78.50 per barrel--its highest since Jan. 27. Iran accounts for over 9% of global crude reserves and 3% of production, raising fears of a supply shock.

From a technical standpoint, analysts are cautious. "Bank Nifty on the weekly chart formed a sizable bear candle, signaling profit booking at higher levels around 57,000," said Bajaj Broking Research. "A close below Friday's low of 55,150 can open up further downside towards 54,500–54,000 levels," the brokerage added, pointing to crucial supports at those levels due to a confluence of the 50-day exponential moving average and the lower band of the recent consolidation.

On the upside, analysts said the index must reclaim 56000 to indicate any pause in the ongoing correction. "Only a move above 56,000 will signal a halt in the decline," Bajaj Broking said.

Options data reflects bearish sentiment as well. Analysts observed the highest call open interest shifted to the 58000 strike while the highest put open interest is now at 55000, signaling a possible trading range.

Other brokerages voiced similar caution. "Bank Nifty continues its corrective action led by PSU banks and index pivots," one said. "Support lies at 55,500–55,700 while resistance remains near 57,000."

Even in a more neutral view, the tone remains watchful. Until geopolitical tensions ease and the index moves past key resistance, Bank Nifty is likely to remain volatile with a downward bias, analysts said.

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Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 86.08

Reported by Sachi Pandey

Edited by Ashish Shirke

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