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Informist, Friday, May 29, 2026

NEW DELHI – The Nifty Bank Index is expected to remain range-bound, with bullish momentum waning and the risk of a decline increasing, analysts said. The index is likely to be guided by technical cues in the coming week, ahead of the Reserve Bank of India's Monetary Policy Committee decision and the release of India's March-quarter GDP on Jun. 5.

The Nifty Bank index Friday settled at 54239.20 points, up 0.3% on week. In comparison, the benchmark Nifty 50 fell 0.7% during the week. Most Nifty Bank shares ended in the black this week. India's top two private-sector lenders and index heavyweights HDFC Bank and ICICI Bank were the only losers.

"The inability to reclaim key moving averages despite multiple recovery attempts points towards a market that is struggling to build sustainable bullish momentum," SAMCO Securities said in a note. "The momentum setup has also started weakening... indicating that the broader trend is still undergoing a corrective phase."

HDFC Bank's share fell 2.9% this week following allegations of wrongdoing in order to attract deposits from a Maharashtra state-owned entity. ICICI Bank's shares were down 0.6% this week. Meanwhile, IDFC First Bank's shares surged 3.5% and were the top gainer after the bank got INR 5.15 billion from the government under the credit guarantee scheme for microfinance loans.

HDFC Bank will remain under scrutiny amid questions about leadership and controls. Meanwhile, the RBI data released on Friday, showing robust loan growth, may be a positive for the index. Banks' loans rose 16.2% on year to INR 211.87 trillion as of May 15.

However, concerns over slow deposit growth and high cost of funds may temper any rise. The credit-to-deposit ratio of banks rose to 82.48% as of May 15, the second-highest on record. The upcoming GDP data and the RBI's monetary policy decision next week are likely to prevent a large move in either direction. 

"Index in the daily chart formed a bearish candle with a lower high and a lower low, highlighting selling pressure at higher levels as the index closed below the 20-day EMA (exponential moving average)," Bajaj Broking said in a note. On the higher side, the current week's high of 55,536 will act as an immediate hurdle for the index, the brokerage said.

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The 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:

End

Reported by Aaryan Khanna

Edited by Saji George Titus

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