By Malvika Gurung
Investing.com -- The domestic market took a breather last week, snapping a four-week rally streak and equity benchmark indices witnessing a nominal fall in the week.
Key sectoral index shed 1% on Friday and closed 0.46% or 211.2 points lower at 45,468.1 in the session, with constituent stocks ending on a mixed note.
The index tanked 1.32% in the previous week as opposed to an up to 0.8% drop in benchmark indices and during the period.
In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities stated that bears dominated the market, and the Nifty Bank index faced consistent selling pressure from higher levels, which indicated a bearish sentiment prevailing in the market.
The index managed to close just above its 20-day moving average (20dma), which is currently placed at 45,350, noted the analyst.
“This moving average acts as a crucial support level, and a break below it could lead to further selling pressure and potentially extend the downtrend,” he said.
However, Shah believes that if the Nifty Bank index manages to hold above the 20dma, it may find some temporary support, which could lead to a potential pullback towards 45700 or 45800 levels.
This pullback could be seen as a short-term relief rally in the prevailing bearish trend, he added.
Gains on the 12-scrip index were led by IDFC First Bank (NS:) and Bank of Baroda (NS:), while the country’s largest private sector lender HDFC Bank (NS:) tanked the most on Friday, followed by Axis Bank (NS:).
Further, declined 311.45 points or 0.68% to 45,675 levels.
Nifty Bank Support Level As Bears Dominate Market, Futures Shed 312 Pts - Investing.com India
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