The Nifty Bank recouped losses but it closed lower on Wednesday for the fourth consecutive day in a row.
The Nifty Bank index was down 56 points to close at 47,704 but it outperformed the benchmark index. The Nifty50 index fell 148 points to close at 21,517.
Selling was seen in HDFC Bank, PNB, and Federal Bank while buying was seen in stocks like Bandhan Bank, IndusInd Bank, SBI, and Axis Bank.
Banking stocks have been under pressure for the past few days. The next crucial support for the index was placed at 20-DMA on Thursday placed around 47,669.
Technical experts are of the view that as long as the Nifty Bank trades below 48,000, volatility is likely to continue.
“Bank Nifty closed marginally in the red and has now reached the 20-day moving average (47669) which it has respected today. Intraday it dipped below that however it has closed above that indicating buying interest at support levels,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.
“We expect the Bank Nifty to consolidate and build a base for the next leg of upmove. On the upside immediate resistance is placed at 47,900 – 48,000,” he said.
Levels To Track
The Nifty Bank opened marginally higher, but it failed to hold on to the momentum and hit an intraday low of 47,481. It recouped losses and closed above 47,700 levels.
The index faced resistance multiple times in the past few days around 48000. Hence, a close above the same give momentum to the bulls.
“The Bank Nifty experienced significant volatility on the day of the weekly expiry, maintaining a bearish trend as long as it stays below the key level of 48000. The index, however, managed to sustain above its 20-day moving average (20DMA) support,” Kunal Shah, Senior Technical and derivative Analyst at LKP Securities, said.
“It is crucial for the index to hold this level, as a decisive break below it could intensify the selling pressure in the market,” he said.
“Traders should closely monitor the movements around 48000 and 47688 for potential trend changes and trading opportunities,” recommended Shah.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
