The Nifty Bank index plunged more than 1% on Wednesday, mirroring the broader market selloff.

The index dropped around 626 points, or 1.2%, to 53,089 as of 12:10 pm. Shares of AU Small Finance Bank and IndusInd Bank led the losses, falling around 3%, while IDFC First Bank, Yes Bank and State Bank of India (SBI) declined about 2% each.

Shares of Canara Bank, Union Bank of India, Punjab National Bank (PNB), Federal Bank, Bank of Baroda and Kotak Mahindra Bank fell around 1% each. Heavyweight private lenders ICICI Bank, Axis Bank and HDFC Bank also traded in the red with marginal losses.

The broader market remained under pressure, with the Sensex falling more than 1,100 points and the Nifty slipping below the 23,300 mark. TCS, Infosys and other IT stocks lost up to 7%.

Technical levels for Nifty Bank

The broader trend for Nifty Bank remains weak as the index continues to trade below key short-term moving averages, while the RSI remains in a bearish crossover on the daily chart, said Vatsal Bhuva, Technical Analyst at LKP Securities.

“The outlook remains sideways to bearish unless the index reclaims its 20-day SMA near 54,300 and sustains above the 55,000 mark. Traders should adopt a level-based approach, with support placed at 53,000 and 52,800, while resistance is seen in the 54,300-54,500 zone,” he added.

Bajaj Broking said the index is likely to remain in a consolidation phase within the 52,500–54,600 range until a breakout or breakdown triggers directional movement.

“The index has key support at 52,700-52,500, marking the confluence of the lower band of the April 8 bullish gap area and the 61.8% retracement of the previous pullback (49,955–57,456). On the upside, resistance is placed at 54,600–55,000, aligned with the current week’s high and the 20-day EMA,” it said.

Today’s selloff came a day after Bank Nifty closed in the green on Tuesday, snapping a four-session losing streak.

“While the index formed a bullish candle on the daily chart, it continued to exhibit a lower high-lower low structure, indicating that the prevailing short-term bias remains negative,” Axis Securities said.