Nifty Bank Prediction For Monday, June 16, 2025: Index Slips Below 55,600, Eyes 55,000 Support

Nifty Bank Prediction for Monday: The Nifty Bank index closed in the red on Friday, June 13, 2025, dropping 555.20 points, or 0.99%, to settle at 55,527.35, slipping below the key 56,000 mark. This marked a bearish week, with the index declining in four out of five trading sessions, forming a significant bearish candle on the weekly chart. The broader market also faced pressure, with the Nifty 50 falling 169.60 points (0.68%) to 24,718.60 and the BSE Sensex dropping 573.38 points (0.70%) to 81,118.60. Geopolitical tensions, particularly Israel’s attack on Iran’s capital, and a spike in Brent crude oil prices triggered profit booking at higher levels around 57,000. As investors look to Monday, June 16, here’s a detailed analysis of the Nifty Bank’s outlook, key support, and resistance levels.

Technical Outlook for Nifty Bank

Market analyst Vipin Dixena, speaking to ET NOW Swadesh, highlighted the Nifty Bank’s bearish momentum after it closed below 56,000. “The index saw profit booking near the 57,000 resistance, forming a major bear candle, indicating selling pressure,” Dixena noted. Brokerage house Bajaj Broking echoed this, stating, “The index has cooled off from overbought conditions, but it remains above its short- and long-term moving averages, suggesting an overall positive bias.”

Support Levels: The immediate support is at 55,150, Friday’s low. A close below this could open the door to further declines towards 54,500–54,000, a key support zone coinciding with the 50-day EMA and the lower band of the recent consolidation range (53,500–56,000). Some X posts suggest an even deeper support at 54,620–54,700.
Resistance Levels: The 55,700–55,900 zone is a critical hurdle. A decisive move above 55,900 could signal a short-term bounce, potentially targeting 56,800–57,100. However, 56,000 remains a strong resistance, as noted by Bajaj Broking.

Dixena emphasized that price action near 55,700–55,900 on Monday will be pivotal. “A rejection here could trigger fresh selling, while holding above 55,500 may lead to a short-term recovery,” he said. The Relative Strength Index (RSI) at 59.65 (neutral territory) suggests room for upside before hitting overbought levels, as seen in earlier bullish phases on June 4.

Market Sentiment and Chart Patterns

The Nifty Bank’s weekly chart confirms a bearish trend, with a “major bear candle” signaling profit booking after hitting an all-time high of 57,049 earlier in the week. X posts reflect cautious sentiment, with @snpteam noting a “normal variation” day on June 13, with the futures closing at 55,655.80 (down 613.80 points) and key value areas at 55,542–55,674. Another user, @ManishB79013135, predicted a bearish bias for Monday after 11:00 AM, with a weekly range of 54,620–55,945.

Despite the correction, the index’s position above the 20-day and 50-day EMAs indicates a constructive long-term structure. Earlier reports from June 9 noted a bullish candle when the index settled at 56,839.60, suggesting resilience if supports hold. A breakout above 55,900 could reignite bullish momentum, as seen in May when the index rebounded from 54,500.

Factors Influencing Monday’s Performance

Several factors will shape the Nifty Bank’s movement on June 16, 2025:

Geopolitical Risks: The Israel-Iran conflict and rising crude oil prices, with over 20% of global supply passing through the Strait of Hormuz, remain a concern, as highlighted by veteran commentator Gaurang Shah. Escalation could keep markets under pressure.
Global Cues: Weak global markets, including Asia-Pacific indices, contributed to Friday’s sell-off. Positive developments, such as easing tensions or US Federal Reserve signals, could support a rebound.
Banking Stocks: Stocks like HDFC Bank, Axis Bank, and IndusInd Bank, which were top gainers earlier in June, underperformed on Friday. Their recovery will be crucial for the index.
Technical Signals: The bearish candle and profit booking near 57,000 suggest caution, but holding above 55,150 could prevent a deeper correction, as noted by Bajaj Broking.

Tips for Investors and Traders : Nifty Bank Prediction for Monday

Watch Key Levels: Monitor 55,150 for support and 55,700–55,900 for resistance. A break below 55,150 could signal a sell-off towards 54,500, while a move above 55,900 may trigger buying interest.
Stay Cautious: Geopolitical uncertainties and volatile crude oil prices warrant a conservative approach. Consult financial advisors before trading, as emphasized in X posts.
Track Global News: Stay updated on the Israel-Iran situation and global market trends, as they could sway sentiment.
Follow Live Updates: Check platforms like etnownews.com or nseindia.com for real-time data and expert insights.

Broader Market Context

The Nifty Bank’s performance mirrors the broader market’s struggles, with the Nifty 50 also slipping below its 20-DMA at 24,718.60. Earlier in 2025, the banking sector drove rallies, with the index crossing 56,000 on June 3 and forming bullish candles. However, sustained FII selling and geopolitical tensions have led to a 15.80% correction from the Nifty’s all-time high of 26,277.35 on September 27, 2024. The Nifty Bank’s high of 57,049 on June 9 reflects its potential, but recent profit booking has tempered optimism.

X users like @StreetTalkMkt21 suggest a sideways range of 54,910–55,960 for the Nifty Bank, aligning with Bajaj Broking’s support at 54,500–55,000. However, bullish predictions from early June targeting 57,500 have been delayed by the current correction.

What to Expect on Monday

For Monday, June 16, 2025, the Nifty Bank is expected to open cautiously, testing the 55,150 support. Holding above 55,500 could spark a short-term bounce towards 55,900–56,800, as per Dixena’s analysis. However, a close below 55,150 may lead to further declines towards 54,500–54,000, a critical support zone. Geopolitical developments will play a significant role, and traders should adopt a wait-and-watch approach, buying on dips only if 55,150 holds, as seen in past recoveries.

The Nifty Bank’s trajectory hinges on technical levels and global sentiment. Stay vigilant and trade wisely in this volatile market!

Disclaimer: This article is for informational purposes only and not investment advice. Consult a financial advisor before making trading decisions. Data is based on reliable sources, including ET NOW and market expert analyses. For live updates, visit etnownews.com or nseindia.com.

Also Read: Nifty Prediction for Monday, June 16, 2025: Index Dips Below 20-DMA, Key Support at 24,400

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