Nifty Bank falls for 3rd day; a close below 47,300 could trigger selling pressure: Experts
Nifty Bank closed in the red for the third consecutive day on Tuesday, pushing the index below crucial support placed around 47,500 levels.
It recouped some losses but closed 288 points lower at 47,484. The Nifty50, however, fell over 100 points to close below 22,200 levels.
Federal Bank, Bank of Baroda, AU Small Finance Bank, IndusInd Bank, and PNB witnessed selling pressure while some buying was seen in HDFC Bank.
The index found support above the 20-DMA on the daily chart and bounced back. However, a close below 47,300 could trigger further selling pressure, suggested experts.
«The Bank Nifty index, after a shaky start, witnessed a recovery in the latter half of the session and managed to close above its 20-day moving average (20DMA), which is situated at 47,500,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.
“If the index sustains above the 47,500-47,400 range, it could experience a pullback towards the 48,000 level,” he said.
“However, a break below 47,300 on a closing basis might trigger further selling pressure, potentially driving the index down towards the 46,500 level,» highlighted Shah.
The Nifty Bank, which opened lower weighed down by weak global cues, managed to recoup losses throughout the trading session and closed above the opening levels thus making a bullish candle on the daily chart.
Bulls tried to stage a comeback as the Bank Nifty managed to close on the high point of the day. On a larger context, it was the third day on the trot when the index closed
