Bank Nifty falls for 5th straight day, trades near 54,000; AU SFB, IDFC First Bank top losers: What lies ahead?

Analysts weighed on key trading levels for the sectoral index in the short-term. "A follow through weakness below 54,000 will open further downside towards 53,500 and 53,100 levels in the coming sessions. Index has key short-term support at 53,500-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move. "On the higher side, only a move above 55,150 will signal pullback towards 56,000 levels in the coming sessions," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

"In the coming trading days, the index is likely to face supply around the 54,700 zone, with further gains capped near 55,000. On the downside, primary support rests at 53,900, below which 53,600 serves as the next critical base," said Axis Securities. "For Bank Nifty, the 20-day SMA near 55,000 would be the key trend-deciding level. Below 55,000, weakness could extend towards 53,500–53,200. On the other hand, a sustained breakout above 55,000 could trigger a recovery towards 55,500–55,800," said Shrikant Chouhan, Head Equity Research, Kotak Neo.

"Bank Nifty is likely to maintain a sideways-to-bearish bias, with the immediate support placed in the 53,700–54,000 zone. A decisive breakdown below this area could extend the decline towards lower support levels, while any recovery may face resistance around 55,300–55,500. The index would need to reclaim this resistance zone and sustain above it to ease the current selling pressure. Until then, the technical setup remains weak, with traders likely to remain cautious on fresh bullish positions," said Hitesh Tailor, Research Analyst, Choice Broking.