Banking Index Extends Decline, Stays Below Key EMAs - Religare Broking Ltd
NIFTY
* Nifty remained under selling pressure on the monthly expiry day, extending the ongoing corrective trend.
* After a weak opening, the benchmark indices remained under pressure through most of the session and traded near their lowest levels in nearly six months, before recovering marginally from the lows.
* From a technical perspective, the Nifty tested its major long-term support of the 200-week simple moving average (200-WSMA) around 22,600 and managed to hold above it, with the next key support placed around 22,400.
* Amid the prevailing conditions, we maintain a cautious view on the market and recommend keeping a close watch on key index levels for further directional cues.
BANKNIFTY
* The banking index extended its decline for the second consecutive session, sustaining well below its short and medium-term EMAs.
* A gap-down opening was followed by sustained selling pressure, with no meaningful recovery emerging during the session.
* Sectoral momentum remained mixed, as Kotak Bank and Bank of Baroda showed relative strength, while IndusInd Bank and Canara Bank witnessed profit booking.
* Immediate resistance is placed near 54,900, while crucial support remains around 53,200.
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