The index started the session below 22,700 and remained under pressure throughout the session and went closer to 22,500.
After a negative start, the Nifty Bank index also extended the losses as the day progress and touched intraday low of 48,477.55.
"The BankNifty index experienced significant selling pressure, marking a return of bearish momentum after a prolonged period.
A breach below this level could intensify the selling pressure," he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management.
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After hitting fresh high in the previous session (on April 10) the bears were back in action on Dalal Street and dragged the Nifty50 index by 1 percent on April 12, amid higher-than-expected US CPI data and selling across the sectors.
The index started the session below 22,700 and remained under pressure throughout the session and went closer to 22,500.
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Nifty ended 234.40 points or 1.03 percent lower at 22,519.40, from the previous close and formed a bearish candle on the daily chart.
"Nifty opened gap down today and after the initial volatility it drifted lower during the course of the day and closed around the lows for the day. It closed in the red down ~234 points. On the daily charts we can observe that the Nifty has breached and closed below the lows of the previous three trading sessions which indicates weakness," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
"We believe that the Index is in the process of retracing the rise it has witnessed from 22710 – 22776, and has been consolidating thereafter."
"The next crucial support level stands at 22370. On the upside 22620 – 22650 shall act as an immediate hurdle from short term perspective," he added.
After a negative start, the Nifty Bank index also extended the losses as the day progress and touched intraday low of 48,477.55. However, it closed 0.86 percent lower at 48,564.55.
"The BankNifty index experienced significant selling pressure, marking a return of bearish momentum after a prolonged period. The index is currently facing strong resistance at the 49,000 mark, and only a decisive close above this level could revive the upward trend towards the 50,000 mark," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
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"Immediate support for the index is established at 48,000, where the highest open interest on the put side has been observed. A breach below this level could intensify the selling pressure," he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
