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Informist, Friday, Aug. 7, 2026

MUMBAI – The Nifty Bank index is likely to remain range bound with a positive bias next week, supported by strong earnings from major lenders, resilient domestic macroeconomic conditions and improving sentiment toward the banking sector. However, global cues, particularly US inflation and labour market data, along with domestic inflation readings, could keep volatility high.

The index ended the week at 57,746.45 points, up 0.8% from the previous week. Immediate resistance is placed at 58,117.10, while support is seen at 57,501.30. A sustained move above the resistance level could pave the way for further gains, analysts said.

Among index constituents, State Bank of India emerged as the strongest performer with a 6.8% weekly gain, followed by Canara Bank's 5.6% rise and Bank of Baroda's 3.3% rise, indicating continued strength in state-owned banks. In contrast, heavyweight private lenders HDFC Bank and ICICI Bank declined 2.3% and 1.0%, respectively. State Bank of India was also supported by better-than-expected earnings for the June quarter. 

State Bank of India's robust earnings, healthy credit growth, improving asset quality and resilient margins have reinforced confidence in public sector banks, providing an important pillar of support to the broader market, according to Vinod Nair, head of research at Geojit Investments. The Reserve Bank of India's decision to maintain its policy stance as neutral while upgrading the growth outlook and lowering inflation projections has also improved investor sentiment.

Going into next week, market participants will closely watch India's CPI and WPI inflation data, banking system credit growth and key US macroeconomic indicators for cues on the US Federal Reserve's policy path.

TOP HEADLINES

* Earnings Review: SBI Q1 net profit beats Street view on healthy NII growth

* UCO Bank leaves MCLR unch; cuts 12-mo T-bill-linked lending rate by 15 bps

* Bank of Baroda to raise additional funds of up to INR 60 bln via bonds

* Fino Payments Bank Jul avg total deposits up 12% on year to INR 27.66 bln

* J&K Bank to mull raising tier I capital Tue

* Analyst Concall:RBI norms for mkt players unlikely to cause major blow - MCX

* RBI Policy: To resume licensing of urban co-op banks through on-tap basis

* RBI Policy: New loan interest rate norms for standardisation, consumer safety

* RBI Policy:To issue draft norms on credit oversight on rural cooperative bks

* CRISL upgrades YES Bank infra, tier-II bond rtg to 'AA+'; outlook 'stable'

* SC asks RBI to prepare norms within 4 weeks to deal with mule accounts

* Banks' FCNR(B) deposits rise by $28 bln Jun 5-Jul 30, says fin min

* Sitharaman says not considering replacing Unified Pension Scheme

* Weighted avg lending rate on new bank loans rises 2 bps on mo to 8.53% Jun

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:

End

Reported by Kabir Sharma

Edited by Shubhayan Bhattacharya

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