Bank Nifty Slips Below 59,000 As Banking Heavyweights Drag Index Lower

Updated: December 29, 2025 14:33

Image Source : Moneycontrol

On December 29, 2025, the Bank Nifty index fell below the 59,000 mark, closing at 58,823.40 after declining for the fourth consecutive session. Losses in IndusInd Bank, ICICI Bank, and HDFC Bank—each down up to 1.5 percent—pressured the index. Analysts flagged key support and resistance levels for traders.

The banking sector witnessed sustained selling pressure as the Bank Nifty index slipped below the crucial 59,000 mark. The decline was led by heavyweight stocks including IndusInd Bank, ICICI Bank, and HDFC Bank, which fell up to 1.5 percent. The index has now recorded losses for four straight sessions, reflecting cautious investor sentiment amid global and domestic uncertainties.

Key highlights from the announcement include

The Bank Nifty index fell 0.32 percent to 58,823.40 at mid-day trade, marking its fourth consecutive decline.
IndusInd Bank, ICICI Bank, and HDFC Bank shares dropped between 1 percent and 1.5 percent, exerting downward pressure on the index.
Technical analysts identified immediate support near 58,500, with stronger support at 58,000.
Resistance levels are pegged around 59,500 and 60,000, which could cap any short-term recovery.
The broader Nifty 50 also traded lower, reflecting weakness across financial and banking counters.
Market sentiment remains cautious due to global cues, including U.S. monetary policy signals and volatility in Asian markets.
Domestic factors such as year-end profit booking and liquidity adjustments have added to the selling pressure.

Analysts suggest traders should monitor support zones closely, as a breach below 58,500 could trigger further downside.

Despite short-term weakness, long-term fundamentals for Indian banks remain strong, supported by credit growth and stable asset quality.

Institutional investors are expected to reassess positions once clarity emerges on global interest rate trends.

The fall in Bank Nifty below 59,000 underscores the sensitivity of the index to both global and domestic triggers. While near-term volatility may persist, analysts believe the sector’s fundamentals remain intact, offering potential for recovery once external uncertainties ease.

As traders and investors navigate the current weakness, the focus will remain on key technical levels and broader market signals. The banking sector’s performance will continue to play a decisive role in shaping overall market sentiment in the coming weeks.

Sources: India IPO, Moneycontrol, ICICI Direct

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