The Nifty Bank index made an intraday high of 46,310 on September 15. The index came within 60 points of its record high of 46,369 but reversed from those levels. Since then, the index is down over 1,700 points.

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As of Thursday's (September 21) low of 44,592, the index declined 1,700 points from the record high levels.

Nearly 75 percent of this fall has come from just two stocks - HDFC Bank and ICICI Bank. HDFC Bank, in its three-day losing streak, has lost nearly Rs 1 lakh crore in market capitalisation.

Chartists had earlier projected 45,300 as a key support level for the Nifty 50, below which, the index could fall towards 45,000. The index has now closed below the 45,000 mark.

Anand James of Geojit Financial Services believes that 45,080-45,030 is a retracement support that should slow down the bears and provide scope for a bounce.

The Nifty Bank has recovered nearly 100 points from the lows of 45,039.

"However, if the index fails to cross 45,500 on the upside bounce, expect further weakness with next supports at 44,800 and 44,220," James added.

Digant Haria of GreenEdge Wealth Services told CNBC-TV18 on September 20 that he does not see a reason for low-float PSU banks to trade at a valuation higher than State Bank of India and Bank of Baroda. Among his top picks, he highlighted Canara Bank and Union Bank of India.

"Pressure is definitely there on the Bank Nifty. We believe 44,300 remains to be the very strong support, which is 80 percent retracement of this entire move. So we don’t expect 44,300 to breach," said Dharmesh Shah of ICICI Securities. He expects some gradual improvement in the index by next week.

The Nifty Bank ended 1.7 percent lower at 44,623.

(Edited by : Amrita)

First Published:Sept 21, 2023 11:13 AM IST