Bank Stocks Outlook
Seen in narrow band; focus to shift to Q3 performance
This story was originally published at 21:32 IST on 26 December 2025
Register to read our real-time news.Informist, Friday, Dec. 26, 2025
NEW DELHI – The Nifty Bank index is expected to trade in a narrow band next week after ending slightly lower this week. Market participants remain cautious due to a lack of fresh positive cues.
The Nifty Bank settled at 59011.35 Friday, down 0.1% on week and lower than the all-time high of 60117.30 points on Dec. 1. The index was dragged down by Federal Bank, State Bank of India, and Bank of Baroda. Canara Bank and HDFC Bank were the biggest gainers this week.
The coming week will mark the end of the calendar year. Analysts will shift their focus towards the financial results for the December quarter. Elara Securities in a report said that the December quarter results for the banking sector will be characterised by better loan growth, improved margins, and steady recovery trends.
The brokerage remains cautious on deposit trends, incremental credit-deposit ratios running high, and the impact of recent changes in the labour laws on operating expenditure. "Even with better Q3 outlook, we expect certain pressure points on deposits and anticipate NIM (net interest margin) revisions (for FY27), which could lead to earnings revision," Elara said.
While the brokerage expects earnings to be resilient for most frontline private sector banks, it sees softer earnings for a few private and mid-sized banks. Public sector banks are expected to report a steady quarter, the report said.
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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 | 974.95 | (-)1.00 | 987.70 | 963.70 |
| Axis Bank | 1228.20 | (-)0.20 | 1234.60 | 1218.80 |
| Bank of Baroda | 288.20 | (-)1.30 | 293.40 | 284.90 |
| Canara Bank | 150.07 | 1.00 | 151.90 | 148.10 |
| Federal Bank | 262.00 | (-)2.20 | 264.90 | 258.70 |
| HDFC Bank | 992.10 | 0.70 | 1001.80 | 982.80 |
| ICICI Bank | 1350.40 | (-)0.30 | 1367.10 | 1340.10 |
| IDFC FIRST Bank | 85.12 | 0.50 | 86.10 | 83.60 |
| IndusInd Bank | 849.85 | 0.60 | 870.40 | 826.80 |
| Kotak Mahindra Bank | 2164.20 | 0.20 | 2184.30 | 2142.90 |
| Punjab National Bank | 120.37 | 0.50 | 121.80 | 118.70 |
| State Bank of India | 966.30 | (-)1.40 | 973.60 | 961.10 |
| Nifty Bank | 59011.35 | (-)0.10 | 59280.00 | 58812.80 |
| Nifty 50 | 26042.30 | 0.30 | 26200.60 | 25929.40 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Shubham Rana
Edited by Deepshikha Bhardwaj
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