Nifty Bank falls more than 600 points; next big support placed at 48,000: Experts
Nifty Bank fell more than 600 points to break below 49,000 on Wednesday tracking muted global cues and now the big support is placed at 48,000.
The banking index fell 640 points to close at 48,501 while the Nifty50 was down 183 points to close at 22,704.
IndusInd Bank, Bandhan Bank, and AU Small Finance Bank closed with gains while selling was seen in SBI, HDFC Bank, Axis Bank, and ICICI Bank.
The index took support above the 21-EMA on the daily charts and if the selling pressure continues the next big support is placed at 48000, suggest experts.
«The Bank Nifty index has demonstrated a clear shift in sentiment by opening below its support level at 49,000 and trading beneath it. It closed near its 21-day EMA at 48,400,” says Rupak De, Senior Technical Analyst, LKP Securities.
“If Bank Nifty fails to maintain above the 21-day EMA, further selling pressure may drive it down to 48,000,” he said.
“Consequently, 48,400 now serves as the support level for Bank Nifty, with 49,000 acting as the new resistance level,” highlighted De.
The Nifty Bank opened lower, and bears remained in control throughout the trading session. The index bounced back after retesting 48400 levels in intraday trade which will act as crucial support in Thursday’s session.
»The market was bearish from the outset, as seen by the price action's steady decline following the gap down opening. Some short covering was witnessed in the last half an hour owing to expiry,” says Bhavik Patel- Senior Research Analyst, Tradebulls Securities.
“There was
