Bank Nifty shed 2 percent dragged by RBL Bank which shed over 5 percent followed by Bank of Baroda, IndusInd Bank and Bandhan Bank which were down over 3 percent each.
The Indian stock market headed lower on July 14 dragged by financial stocks as virus cases continue to rise. Sensex is down 302.81 points or 0.83 percent at 36390.88, and the Nifty shed 88.80 points or 0.82 percent at 10713.90.
Among the sectors, Bank Nifty shed 2 percent dragged by RBL Bank which shed over 5 percent followed by Bank of Baroda, IndusInd Bank and Bandhan Bank which were down over 3 percent each.
Shares of HDFC Bank was down over 2 percent after the Bank on July 13 said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year. It was also one of the top index losers.
From the PSU Banking space, Bank of India, Central Bank of India, Indian Bank, State Bank of India and JK Bank were lower by 2 percent each.
Shabbir Kayyumi, Head of Technical & Derivative Research|Narnolia Financial Advisors is of the view that the banking index has managed to give a breakout by closing above the last 5-week's high, suggesting prices are ready to soar higher towards 24,000 mark. Sustainability above 100 DMA also suggests bullish bias to continue in the coming sessions.
He recommends buying IndusInd Bank around Rs 530 with target at Rs 630. Indicators and oscillators in IndusInd Bank are showing a conducive scenario in the coming sessions. So based on the mentioned technical structure, one can go long in the scrip around Rs 530 for the target of Rs 630 mark with stop loss of Rs 470.
Nifty Financial Services shed 2 percent dragged by Bajaj twins - Bajaj Finance down 2 percent while Bajaj Finserv shed 3 percent. The other losers included HDFC, Bajaj Holdings and SBI Life Insurance.
On the other hand, Manish Srivastava, Technical Analyst (Equity & Currency) at Rudra Shares & Stock Brokers has a buy call on PSU major SBI with target of Rs 225 per share. The broker is of the view that the stock is on the verge of breaking out from an "inverse head & shoulder" pattern.
The RSI has started trading in a bullish zone for the first time in the current year and other momentum indicators are also trading with a bullish bias. The upward slope of short term moving averages suggesting that stock is poised for a breakout and can be bought for short term gain, he added.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.