Major correction in Bank Nifty
image for illustrative purpose
Profit booking continued third day in a row as BSE Sensex was down by 571 points. Among sectors, all the major sectoral indices witnessed profit booking at higher levels, but PSU banks lost the most shed over 2.25 per cent. Technically, after a gap-down opening, the index witnessed selling pressure throughout the day. In last three days, the market corrected over 1,800 points.
“We are of the view that, the index completed one leg of correction and for the bulls now, the 66,000 would be the key level to watch out,” says Shrikant Chouhan of Kotak Securities.
If the index succeeds to trade above the same, then we could expect one relief rally, above the 19700/66000 the market cold rally till 66,500-66,750.
On the flip side, fresh selling possible only after dismissal of 66,000 below the same, the market could slip till 65,800-65,600.
Kunal Shah, senior technical & derivatives analyst at LKP Securities, says: “Bank Nifty experienced a significant correction during the day, with the Banking benchmark Index dropping below the 45,000 mark for the first time in several days.”
Furthermore, it fell below both the 20EMA and 50EMA on the daily timeframe. The RSI is signaling bearishness with a bearish crossover on the daily timeframe. In the short term, it could potentially move towards 44,000 on the lower end, while encountering resistance at 45,000 on the higher end.
