Nifty Bank Overview, Outlook: Momentum Indicator RSI in Bearish Zone
By Malvika Gurung
Investing.com -- The domestic market indices declined on Friday and extended losses for the third time in a row last week, mainly led by developments around the global banking crisis and rate hikes by major central banks.
Key sectoral index Nifty Bank fell 0.81% in Friday’s intraday trade, hitting the session’s low at 39,294.9 points, while ending the day 0.56% or 221.55 points lower at 39,395.35 levels on March 24, with all constituent stocks ending in the red except one.
In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities said that the Nifty Bank bears took control on the last day of the week, with the index ending on a negative note.
He stated that the sectoral index remains in a sell on rise mode as long as it does not surpass the 40,000 level.
“The immediate support on the downside is at 39000 and a breach below this will lead to a sharp decline. The momentum indicator RSI trading in the bearish zone confirms the weakness in the index,” the expert added.
The private sector lender Kotak Mahindra Bank (NS: KTKM ) was the only stock in the 12-scrip sectoral index that ended the session with gains.
On the flip side, Bandhan Bank (NS: BANH ), Punjab National Bank (NS: PNBK ) and IDFC First Bank (NS: IDFB ) led the losses on the sectoral pack, sliding up to 5%.
Further, Bank NIFTY Futures shed 0.81% or 320.6 points to 39,383.2 levels.
Benchmark indices Nifty50 fell 0.77% to close at 16,945.05 points and Sensex lost 398.18 points or 0.69%.
Read Also: Nifty Weekly Review and Outlook, Key Levels
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