Bank Stocks Outlook
West Asia conflict to keep Nifty Bank under pressure
This story was originally published at 22:29 IST on 13 March 2026
Register to read our real-time news.Informist, Friday, Mar. 13, 2026
By Kabir Sharma
MUMBAI – The Nifty Bank index is expected to fall further next week as market sentiment remains subdued due to the West Asia conflict, analysts said. "Market volatility is expected to persist in the near term as geopolitical tensions in West Asia continue to disrupt the energy sector and push crude oil prices higher, while uncertainty around shipping routes through the Strait of Hormuz keeps risk sentiment fragile," Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services, said in a note.
The Nifty Bank index Friday settled at 53757.85 points, down 7% on week. In comparison, the benchmark Nifty 50 fell 5.3% this week. IDFC FIRST Bank and IndusInd Bank were the worst hit this week, each falling by over 10%.
The conflict in West Asia and how it evolves will be the major drivers for the index next week, analysts said. "Looking forward, market direction is likely to remain dominated by the Israel and US conflict with Iran and crude trends, given their knock-on effects on inflation, corporate margins, the current account, and RBI policy space. A firm dollar and higher US yields may keep FIIs selective and volatility elevated," Vinod Nair, head of research at Geojit Investments, said in a note.
In its technical view, Bajaj Broking said, "...the index sustaining below the 53,600 level could trigger further downside towards the 52,500–51,800 zone in the coming weeks. This range is significant as it coincides with the 61.8% Fibonacci retracement of the rally from the January 2025 lows and also aligns with the low of the breakout candle formed in April 2025, making it an important demand zone to monitor."
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Following are the resistance and support levels for key bank stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| AU Small Finance Bank | 884.35 | (-)8.30 | 914.70 | 866.80 |
| Axis Bank | 1197.30 | (-)9.00 | 1248.90 | 1168.50 |
| Bank of Baroda | 281.05 | (-)4.80 | 290.40 | 275.40 |
| Canara Bank | 134.68 | (-)7.70 | 141.60 | 130.90 |
| Federal Bank | 263.05 | (-)8.20 | 272.60 | 257.40 |
| HDFC Bank | 817.00 | (-)4.70 | 829.40 | 805.80 |
| ICICI Bank | 1254.80 | (-)4.50 | 1268.90 | 1241.70 |
| IDFC FIRST Bank | 62.57 | (-)10.60 | 65.70 | 60.40 |
| IndusInd Bank | 814.40 | (-)11.30 | 845.80 | 789.10 |
| Kotak Mahindra Bank | 366.85 | (-)8.20 | 378.20 | 357.80 |
| Punjab National Bank | 111.70 | (-)6.40 | 117.90 | 108.40 |
| State Bank of India | 1047.00 | (-)8.40 | 1095.90 | 1017.90 |
| Index | Levels | |||
| Nifty Bank | 53757.85 | (-)7.00 | 55087.20 | 53011.10 |
| Nifty 50 | 23151.10 | (-)5.30 | 23632.20 | 22871.40 |
| S&P BSE Sensex | 74563.92 | (-)5.50 | 75986.50 | 73743.30 |
End
US$1 = INR 92.45
Edited by Ashish Shirke
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