Indian Market Faces Stiff Resistance at Higher Levels: Geojit Financial Services
Mumbai, Feb 21 (IANS) – According to Vinod Nair, Head of Research at Geojit Financial Services, the Indian market is facing resistance at higher levels due to the significant premium in the valuation of the broader index. This has led to an unfavourable risk reward, prompting investors to book profits.
Global markets traded cautiously as they awaited US Fed minutes, with Chinese markets buoyed by policy interventions. However, concerns lingered as investors heavily bet on a US FED rate cut, which is now at risk due to January’s higher-than-expected inflation.
On Wednesday, Nifty closed at 22,055.05, down 141.90 points or 0.64 per cent, while Sensex ended lower by 434.31 points or 0.59 per cent at 72,623.09. Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally.
The momentum indicator RSI is showing a bearish crossover, signaling weakness in the near term. Immediate support is positioned at 22,000, and a drop below this level could lead the index towards 21,700. On the upside, resistance is identified at 22,160, according to De.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted that the BankNifty index experienced a volatile trading session during the weekly expiry and encountered resistance around the 47,300 levels. Currently stuck in a broad range of 46,500-47,500, the index faces limitations on further upside until it surpasses the 47,300-mark. The immediate support stands at 46,800, and a breach below this level could intensify selling pressure, potentially pushing the index towards 46,500.
As the Indian market faces stiff resistance at higher levels, investors are closely monitoring the ongoing trends and indicators for potential future developments.
–IANS
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