The Nifty Bank closed in the red for the second day in a row on Monday as investors preferred to book profits after the recent rally. The index fell 145 points to close at 45,825. The Nifty50, on the other hand, fell 82 points to close below the 21,800 level.

“The Indian market witnessed a sharp fall during the final hours of Monday’s trading. The robust US job data for January indicates that the expected rate cuts from the Fed in the coming year may be less imminent,” said Vinod Nair, head of research at Geojit Financial Services.

“This is reflected in the recent sharp climb in US bond yields to above 4% levels, which prompted investors to book profits from the post-interim Budget rally amidst elevated valuations,” he said.

The Nifty50 closed below the crucial short-term moving average (50-DMA) on the daily charts for the 12th consecutive day in a row. The 50-DMA is placed at 46,652.

The Nifty Bank index is likely to consolidate in a range and the big support for the index is placed at 45,000-45,400 levels, suggested experts.

“Bank Nifty witnessed follow-through selling pressure from the previous trading session,” said Jatin Gedia – technical research analyst at Sharekhan by BNP Paribas.“It closed below the key averages indicating weakness. Overall, the trend remains sideways, and the range of consolidation is likely to be 45,000 – 47,000,” he said.The Nifty Bank opened marginally lower, but it eventually drifted lower to test 45,615 in the morning trade before gaining momentum.

The index eventually gained momentum in the second half but selling in the last one hour of the trading session pushed the index lower.

The index is facing constant pressure around the 50-DMA. The immediate support for the Nifty Bank index is placed at 45,400 levels.

“The Bank Nifty index is currently in a bearish territory, encountering formidable resistance at 46,500. The index’s immediate support is positioned at 45,400, and a breach below this level is anticipated to trigger additional selling pressure,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.

“The index persists in a ‘sell on rise’ mode unless it convincingly surpasses the 46,500 mark on a closing basis,” he said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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