Bank stocks declined up to 3%, pushing the Nifty Bank index down around 1% as falling rupee, rising bond yields and other factors dampened overall market sentiment, with analysts highlighting key technical levels to watch out for.Earlier in the day, the Nifty Bank index tumbled around 930 points to drop to an intraday low of 52,783. This came as the benchmark Nifty 50 index dropped nearly 1.4% (around 330 points) to trade below 23,350. Market however recovered some losses by afternoon. At 12.40 pm, Nifty 50 was down only 0.2% while the Nifty Bank index was down 0.8% (more than 450 points) to trade at 53,257. The shares of Punjab National Bank (PNB), Canara Bank, Yes Bank and Union Bank of India declined around 3% each, while those of State Bank of India (SBI) and AU Small Finance Bank fell around 2% each. Bank of Baroda, Axis Bank and IDFC First Bank shares declined over 1% each.ICICI Bank, IndusInd Bank and Kotak Mahindra Bank shares were trading in the red with marginal losses, while HDFC Bank and Federal Bank shares recovered losses to rise up to 1%.Also Read | Why is market falling today? Sensex falls 600 points, Nifty below 23,500; 5 key factors behind bloodbathBond yields soar to record highsBond yields soared to record high levels across the globe as inflationary pressures and fiscal concerns mounted amid the prolonged conflict in the Middle East. The yield on benchmark US 10-year notes jumped to 4.632%, the highest level seen February 2025. The 30-year bond yield surged to 5.156%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose to 4.101%. This came amid a global debt selloff, leading to falling bond prices and rising yields.Indian government bonds joined the global rout. The benchmark 6.48% 2035 bond yield gained about 7.5 basis points to hover near a six-week high level of ‌7.1427% in the morning. Falling bond prices typically result in treasury losses for banks.Veteran banker Uday Kotak recently took to X to say that a crucial macro factor is the US 10 year bond yields. “They have moved up from 4.16% on January 1, to 4.60%. It reflects increasing strain for US borrowing program as US debt nears $40 trn. When the US sneezes, world gets a cold. Watch out for bond yields around the world,” he wrote.— udaykotak (@udaykotak) Additionally, rupee dropped to a fresh all-time low of 96.18 against the US dollar on Monday, eclipsing its previous record of 96.1350. The Indian currency is Asia's worst performer so far in 2026, and has ‌dropped 5.5% since the Iran-US war erupted on February ⁠28.Technical levels for Nifty BankThe Nifty Bank index on Friday formed a bearish candlestick pattern which remained contained inside previous session price range, signaling a corrective trend, Bajaj Broking pointed out. It highlighted that the banking index needs to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 54,400 - 54,700 to signal a pause in the downtrend.On the downside, Bajaj Broking sees Nifty Bank index finding support at 53,210 and then at 52,900. On the upside, it sees resistance at 53,930 and 54,200."Bank Nifty formed a bearish candlestick pattern on the daily chart, indicating selling pressure at higher levels. The index is currently consolidating within a narrow range near lower levels, reflecting weak market sentiment and lack of strong buying momentum. Technically, the index continues to trade below its crucial short-term 20-day moving average, which suggests a cautious undertone in the near term. Momentum indicators also remain weak, with RSI trending lower near the 42 mark. The overall chart structure indicates continued softness in the index,” said Vatsal Bhuva, Technical Analyst at LKP Securities.Bhuva sees Nifty Bank index finding support near 53,200, while the 54200–54300 zone is expected to act as a strong resistance area in the short term.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)