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Informist, Friday, Jul. 3, 2026

 

By Aaryan Khanna

 

NEW DELHI – The Nifty Bank index is expected to rebound next week and rise after a week of consolidation, where the index marked its first decline in five weeks. A positive outlook for deposit growth from the Reserve Bank of India's measures and technical levels also holding up suggest banking stocks will begin the June quarter earnings season on a positive note before any major releases. 

 

The Nifty Bank Friday settled at 57938.50 points, down 0.4% on week, dragged down by public-sector lenders. The benchmark Nifty 50 rose only 0.9% this week. Heavyweight Bank of Baroda was the biggest loser in the sectoral index, down nearly 10% from a week ago after its Abu Dhabi arm agreed to pay $600 million in an out-of-court settlement. State Bank of India and Punjab National Bank, the other large state-owned lenders in the index, also ended the week in the red.

 

IndusInd Bank helped to mitigate the fall as its stock rose 6.0% on week. HDFC Bank gained marginally after appointing a new part-time chairman, Rajiv Kumar, for three years. The country's largest private-sector lender has performed poorly over the past months as it has been embroiled in several personnel controversies after former part-time chairman Atanu Chakraborty resigned in March citing an incongruence in the bank's practices and his values.

 

"Progress on the FCNR(B) (foreign currency non-resident bank) deposits should gain further pace from next week, which should be a relief to the industry," Anand Dama, head (banks and financial services) at Nuvama Research, said. "We feel HDFC Bank's quarterly update will be a positive and help prop up Bank Nifty as well. The part-time chairman has also been announced, while MD & CEO (managing director and chief executive officer) term extension should be cleared soon and so the stock has room to rise."

 

Close attention will be on the pace and size of FCNR(B) deposits that banks are able to attract over the next three months, analysts said. The RBI in June introduced a concessional swap window with no hedging costs for 3- to 5-year deposits under a special scheme until Sept. 30. After a clarification from the central bank, the scheme has begun to attract deposits, bankers said.

 

Even after the fall this week, the technical setup for the banking sector index remains tilted towards the upside, analysts said. The Nifty Bank recovered in the second half of the week despite falling below 57500 points twice intraday.

 

"Despite the ongoing consolidation, the broader undertone remains bullish as the index continues to trade above its key moving averages," Vatsal Bhuva, technical analyst at LKP Securities, said in a note. "Immediate support is placed at 57500–57200, while resistance is seen at 58500–58800. Traders may consider adopting a buy-on-dips strategy near the support zone for a favourable risk-to-reward ratio, with profit booking recommended as the index approaches the resistance zone."

TOP HEADLINES
* Union Bank's gross advances up 12.5% on year as of Jun 30
* PNB global advances up 12.9% on year as on Jun 30, global deposits rise 8.5%
* NSE lifts ban on YES Bank broking arm from onboarding new clients
* Bank of Baroda Abu Dhabi branch settles NMC Health court case for $600 mln
* Bank of India's advances up over 19% YoY, deposits up 16% YoY as on Jun 30
* Kotak Bank acquires INR-95.9-bln loan portfolio of arm
* Constraints on banks, NBFCs to benefit private credit funds, says Moody's
* DBS Bank India revises 3-5 year FCNR (B) rates to 5.60%
* Suryoday Small Fin Bk gets INR 3.87 bln claim under credit guarantee scheme
* Canara Bk's global advances up 18% YoY as of Jun 30, global deposits up 12%
* Indian Bank's gross advances rise 14% on year as of Jun 30, deposits up 13%
* RBI norms on buyout financing to up competition for private credit - Moody's
* Kotak Bank to acquire Deutsche Bank's retail, pvt banking business in India
* RBI Report: Econ resilient amid shocks; near-term risks uncertain - Malhotra
* CCIL gets ESMA recognition as central counterparty, can be supervised by RBI
* YES Bank gets INR 8.79-billion cumulative income tax refund
* HDFC Bank appoints Puneet Sharma as CFO with effect from Dec 1
* RBI loosens norms for special non-resident rupee accounts, allows via IFSC
* HDFC Bk appoints former chief election commissioner Rajiv Kumar as chairman
* YES Bank board OKs raising up to INR 75 bln in equity, INR 85 bln in debt
* Bandhan Bank CFO Rajeev Mantri resigns, to step down Sept 25
* Axis Bank CFO Puneet Sharma resigns; to be relieved on Aug 31
* Short-Term Debt: Canara Bank raises INR 32 bln via Nov CD at 6.88% Mon
* Kotak Mahindra Bank says MD, CEO Ashok Vaswani to not seek reappointment
* Legal review found no basis for former chairman's claims, HDFC Bank says
* Bandhan Bank says no need for capital now; to begin talks on raising capital
* ICRA ups rating on RBL Bank's Basel III tier II bonds to 'AAA' from 'AA-'
* Data Alert: Banks raise 3- to 5-year FCNR(B) deposit rates up to 7.50%
 

Following are the resistance and support levels for the sector's key 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	1,058.40	2.4	1,079.90	1,038.30
Axis Bank	1,342.10	(-)2.6	1,385.80	1,316.60
Bank of Baroda	252.20	(-)9.7	261.70	245.20
Canara Bank	127.19	(-)1.4	130.20	123.20
Federal Bank	327.40	1.0	337.30	321.50
HDFC Bank	801.05	0.6	810.70	793.80
ICICI Bank	1,411.40	1.7	1,426.50	1,398.30
IDFC FIRST Bank	80.46	1.6	82.40	78.20
IndusInd Bank	974.35	6.0	1,001.30	928.70
Kotak Mahindra Bank	396.75	(-)3.0	404.50	390.70
Punjab National Bank	105.35	(-)2.3	108.40	102.60
State Bank of India	1,040.00	(-)0.5	1,066.30	1,021.30
Index	Level
Nifty Bank	57938.50	(-)0.4	58571.10	57482.70
Nifty 50	24270.85	0.9	24426.30	24174.70
S&P BSE Sensex	77763.91	0.9	N.A	N.A

End

 

Edited by Rajeev Pai

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