MUMBAI: After a consolidation breakdown on the daily chart, Bank Nifty experienced a 2,000-point correction in a short span of time, said Rupak De, Senior Technical Analyst at LKP Securities.
The index appeared somewhat oversold, leading to a pullback on Friday. However, the sentiment remains predominantly bearish, and any upward movements may still face selling pressure, he said.
On the upper side, 43,000 could serve as a significant resistance level, as call writers have established substantial positions there. Support can be observed at 42,500, where writers have a strong presence, he added.
Vinod Nair, Head of Research at Geojit Financial Services, said the domestic market recovered well on Friday compared to Thursday's sharp corrections due to restrained FII’s selling along with moderation in currency and global bond yield volatility.
Till date, the Q2 results outcome is decent, which is in-line with the buoyant estimates, he said.
"Yet, the market is not enthusiastic as we are at the cusp of earnings downgrade in anticipation of further slowdown in the world economy due to elevated interest rate and geopolitical risks," he added.
On Friday, Nifty closed 190 points, or 1.01 per cent, higher at 19,047.25, while the Sensex closed at 63,782.80, up 635 points, or 1.01 per cent.