At 14:25 hrs IST, the Sensex was down 466.02 points or 0.65 percent at 71,129.47, and the Nifty was down 143.90 points or 0.66 percent at 21,638.60.
The Sensex, the Nifty and Bank Nifty were trading deep in the red on February 12 afternoon, as selling pressure intensified in the final hours of trading, reinforcing the bearish outlook.
The Nifty slipped below the crucial support of 21,700, while Bank Nifty tumbled 2 percent to 44,755 points. Sentiment remains weak, technical analysts said.
Volatility jumped 5 percent pushing India VIX to 16.
“The Nifty declined after a consolidation breakdown on the hourly chart, indicating an increase in pessimism. The daily chart shows the index forming a lower top, signalling diminishing bullish sentiment. The momentum indicator aligns with this bearish outlook,” said Rupak De, senior technical analyst, LKP Securities.
If the Nifty stays below 21,850, sentiment is expected to remain weak, De said. On the downside, support is at 21,500
The index is trading in a 5 to 6 percent range — 22,100-21,100. It has “retracted from the upper band of consolidation followed by a breach of the immediate support of the 21,670 level”, Kapil Shah, senior technical analyst, Emkay Global said. If the index slips below 21,670, it will come under further selling pressure and fall to 21,500 in the very short term, Shah said.
Bank Nifty may land in bearish territory
The banking index needs to defend the 44,900 level to avoid a further fall. On the daily charts, Nifty Bank formed a bearish engulfing pattern, said Sheersham Gupta, Director, and senior technical analyst, Rupeezy. A close below 44,900 would technically land the banking index in the bearish territory, as its 200-DMA lies at this level. “This would mark the index’s first descent into bearish territory in over three months,” Gupta said.
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He said 44,500 points is the level to watch for on the Bank Nifty. “A slide below this level can take Nifty Bank to 44,000. On the upside, Nifty Bank is expected to face tough resistance at 45,250,” he said.
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