Nifty Bank index fell 1.3% to close at 43,583 on Friday pulled down by losses in IDFC First Bank, SBI, Axis Bank and Bandhan Bank. Maximum Call OI is placed at 44000 while maximum Put OI is placed at 43000.
State Bank of India fell over 3% while ICICI Bank closed with a loss of 1.5%.
Bank Nifty witnessed a sharp decline and is now approaching the crucial support of the 20-Day moving average of 43400. This is a crucial support from short-term perspective, suggested experts.
“The weakness can continue. It, however, is nearing crucial support and hence one should look for signs of reversal from the support zone of 43400,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
The RBI’s announcement on consumer loans weighed on financials and the weakness could continue in the coming week as well.The crucial support for the index on the downside is placed at 43,300 level while a breach of the same could push the index towards 42000, suggested experts.
“Following the RBI’s announcement of tightening provisions for consumer loans, the Bank Nifty opened with a gap down and sustained below the 44,000 mark,” said Kunal Shah, senior technical and derivative analyst at LKP Securities.
“The index’s next support is situated at the 43,300-43,250 zone, serving as a crucial line of defence for the bulls. If this level holds, it could pave the way for a potential recovery towards the 44,000 mark,” he said.
“However, a breach of the mentioned support may intensify selling pressure, leading the index further down towards the 42,700 level on the downside,” highlighted Shah.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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