Nifty Bank breaks below 50-DMA; next big support is placed at 47,000: Experts
Nifty Bank continued its losing streak but managed to hold onto its crucial support of 47,400. However, it closed below the 50-DMA on the daily charts.
The Nifty Bank fell 66 points to close at 47,421 and on a weekly basis the index was down by more than 3%.
The Nifty50 bounced back and rose 97 points to close at 22,055 on Friday.
AU Small Finance Bank, PNB, Federal Bank, and Bandhan Bank were among the top gainers, while selling was seen in SBI, HDFC Bank, Kotak Bank, and Bank of Baroda.
The Nifty Bank closed below the 50-DMA placed at 47,606, suggesting that there could be some selling pressure in the coming week.
«Bank Nifty made a big ‘Bearish candlestick’ pattern on a weekly basis after ‘Shooting Star’ candlestick pattern indicating short term top around 49,974 has been established,” Bhavik Patel- Senior Research Analyst, Tradebulls Securities, said.
“Next support for the market comes around 47,000 and 46,570 according to the daily chart while resistance still holds around 48,250. Any short covering is only possible above that level,” he said.
Call writing has been witnessed at 47,500 and 47,600, indicating an immediate hurdle, while some put unwinding is being witnessed at 47,000 and 46,800 showing a market expectation of a downward trend.
“Until 48,250 is not breached, traders should opt for the sell-on-rise strategy,” recommends Patel.
The Nifty Bank opened slightly higher and built on gains to reclaim 47,800 levels, but faced selling pressure in the second half of the trade.
The index did manage
