Bank Stocks Outlook
Nifty Bk seen volatile amid developments in W Asia war
This story was originally published at 22:15 IST on 22 May 2026
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NEW DELHI – The Nifty Bank index is expected to remain volatile next week amid the West Asia war, analysts said. "Indian markets ended Friday's session on a positive note, supported by strength in banking stocks and improving optimism surrounding the ongoing US-Iran peace discussions," Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd., said in a note. "Investor sentiment improved after comments from US officials suggested that diplomatic talks with Iran were progressing constructively, raising expectations of a potential easing in geopolitical tensions across West Asia."
Banking and financial stocks led the gains after reports indicated that the Reserve Bank of India may avoid an off-cycle interest rate hike despite persistent rupee weakness, he said.
The Nifty Bank index Friday settled at 54055.35 points, up 0.6% on week. In comparison, the benchmark Nifty 50 rose 0.3% this week. Most of the shares in the Nifty Bank ended in the green this week. State Bank of India was the worst hit this week, falling 1.5%, while Axis Bank was the top gainer, up 3.3%.
RBL Bank shares will remain on investors' watch list. The bank will be able to place bids for Emirates NBD Bank's open offer between Jun. 1 and Jun. 12, according to the new schedule announced in an exchange filing Friday. Emirates NBD Bank aims to acquire a 26% stake in RBL Bank at INR 282.38 per share through the open offer. The results of the bidding process will be announced to shareholders on Jun. 29.
Shares state-owned Canara Bank will also be in focus as the lender is in talks with the Pension Fund Regulatory and Development Authority to enter the sector by setting up a pension fund. In January, the PFRDA allowed scheduled commercial banks to independently set up pension funds to manage corpus under the National Pension System.
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* Govt to offload 4% stake in Central Bank of India via OFS, issue opens Fri
* Fino Payments Bank accepts early retirement request by MD, CEO Rishi Gupta
* Union Bank of India to mull raising funds via equity, debt on Tue
* Banks casual in giving huge loans to big entities, demanding on ordinary - SC
* Canara Bank in talks with PFRDA to set up pension fund business, says source
* RBI proposes lenders can restrict, disable mobile devices to recover loans
* SC seeks details of Cabinet meet on decision to write off YES Bank AT1 bond
* IDBI Bank reappoints Jayakumar S Pillai as deputy MD for 1 yr from Jun 12
* Earnings Review: Karnataka Bank Q4 PAT surges on fall in expenditure
* RBI seeks comments on draft norms on capital adequacy disclosures by Jun 2
* RBI says banks need not activate counter-cyclical capital buffer right now
* Banking secy to Tue discuss expediting PSU banks' pending cases at NCLT
* RBI ends commercial banks' need for Investment Fluctuation Reserve
* South Indian Bank cuts MCLR by 5 bps across tenures, effective Wed
* Banking secy rolls out austerity steps; tells bankers to cut travel, adopt EV
* Jana Small Fin Bank to allot warrants worth INR 7.29 bln via pvt placement
* SBI cuts rates on domestic bulk term deposits in 4 tenors effective Fri
* Ministry of Finance OKs Emirates NBD's purchase of up to 74% stake in RBL Bk
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 | 977.90 | (-)1.30 | 994.40 | 953.20 |
| Axis Bank | 1,285.40 | 3.30 | 1,310.80 | 1,241.40 |
| Bank of Baroda | 265.40 | 1.50 | 269.20 | 260.80 |
| Canara Bank | 128.23 | 0.10 | 129.30 | 127.10 |
| Federal Bank | 287.20 | 2.10 | 291.50 | 281.10 |
| HDFC Bank | 766.80 | (-)0.10 | 782.80 | 751.10 |
| ICICI Bank | 1,264.30 | 1.60 | 1,287.80 | 1,230.20 |
| IDFC FIRST Bank | 68.88 | 1.80 | 69.70 | 67.70 |
| IndusInd Bank | 910.15 | 2.70 | 920.90 | 897.30 |
| Kotak Mahindra Bank | 384.15 | (-)0.80 | 389.10 | 378.50 |
| Punjab National Bank | 102.66 | 0.60 | 103.50 | 101.60 |
| State Bank of India | 949.20 | (-)1.50 | 962.70 | 940.90 |
| Index | Levels | |||
| Nifty Bank | 54055.35 | 0.60 | 54646.80 | 53187.80 |
| Nifty 50 | 23719.30 | 0.30 | 23906.60 | 23577.30 |
| S&P BSE Sensex | 75415.35 | 0.20 | 76065.90 | 74905.50 |
End
US$1 = INR 95.69
Reported by Vaishali Tyagi and Kabir Sharma
Edited by Akul Nishant Akhoury
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