The Nifty Bank underperformed the benchmark index and formed a Bearish candle for the third consecutive day in a row on Tuesday.
The Nifty Bank fell more than 200 points to close at 47,242. The Nifty50 closed flat but with a positive bias.
AU Small Finance Bank, IDFC First Bank, HDFC Bank, Axis Bank, and SBI were among the top losers, while buying was seen in Federal Bank, Bandhan Bank, and Kotak Mahindra Bank.
The Nifty Bank index formed a bearish candle today and the next big support is placed around 47,000. A breach below the same could trigger another round of selling, suggest experts.
“The Bank Nifty index witnessed continued dominance by bears as selling pressure intensified from higher levels. The index is currently facing a strong hurdle at the 48,000 mark, where a significant buildup in open interest is observed on the call side,” Kunal Shah, Senior Technical and derivative Analyst at LKP Securities, said.
“The immediate support for the index is positioned at the 47,000-46,900 levels. A breach below this support zone is likely to trigger aggressive selling pressure, potentially leading to further downside momentum,” he said.
Levels To Track
The Nifty Bank index opened a gap up near 47,700 zones and extended the momentum towards 47,940 in the first half of the session.
However, later it failed to hold on to higher levels and drifted sharply towards 47,150 zones in the latter part of the day.
The index recouped some losses from the day’s low to close at 47,242 and formed a bearish candle on the daily charts.
“Nifty Bank formed a Bearish candle on the daily scale as Index corrected by more than 750 points from its intraday’s high and gave a range break down below 47,400 zones,” Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, said.
“Now, till it holds below 47,500 zones some weakness could be seen towards 47,000 then 46,750 levels, while on the upside hurdle is seen at 47,500 then 47,777 zones,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
