New Delhi. Investors associated with the stock market in India are often worried about the movement of Nifty and Bank Nifty. And when there is a decline, this concern increases even more. Recently, both the major indices of India have seen a decline. In such a situation, the question comes to the mind of investors that what is the reason for this decline and what are the future prospects? Amidst such a decline, when an expert says anything about this, then his words are listened to and understood very carefully. Now Rohit Srivastava, founder of India Charts, has said that Nifty Bank may fall further by 2000 points.

The point to be noted here is that banks are the basis of the progress of any country. As long as the condition of banks remains strong, the wheel of the economy also keeps moving well. Recently, very poor quarterly results of some banks have affected the market sentiment. This is also negative news for foreign portfolio investors.

Leading market analyst and founder of India Charts, Rohit Srivastava, told CNBC-TV18 in an interview that Nifty Bank may fall further by about 2,000 points from the current level. This was said on Friday, October 25, while the Nifty Bank index has already recorded a decline of about 4,000 points.

On Friday too, Nifty Bank fell by 743.70 points, and it went below 50,500. However, it closed at 50,787.45. According to technical indicators, at this time the Relative Strength Index (RSI) of Nifty Bank is at the level of 39, which brings it close to 'oversold'. 'Oversold' means that there has been a fair amount of selling in any stock or index, and its price is quite low at this time.

Srivastava said that during 'free fall', reversal does not happen easily even if oversold is seen. According to him, the level of 48,500 points can bring stability for the next stop in Nifty Bank, which indicates a fall of 2,000 points from the current level.

Nifty decline and important support levels
Nifty chart has been facing a decline for 4 consecutive weeks. Srivastava said the first support level for Nifty is 23,700 points and then 23,200 points, which is close to its 200-DMA. CLSA chart expert Lawrence Balanco also predicted earlier this week that Nifty could test its 200-DMA levels in the next 20 trading sessions.

Advice for investors
Shrivastava said that the risk-reward ratio on short trades looks better on Nifty at this time. It is not so good on Bank Nifty. He has advised investors to avoid entering any counter-trend bounce or catching a 'falling knife' at this time. 'Falling knife' means catching a stock during a fall, which is risky. A falling knife means a falling knife in Hindi. If you try to catch a falling knife, your hand can be cut.

What did he say about midcaps?
Most small investors want to invest in midcap and smallcap companies. He believes that the Nifty Midcap index has also entered the 'correction' zone, which has seen a decline of more than 10% since September 24. From its peak level on September 27 till now, the Nifty has fallen by 2,200 points, while the Nifty Bank has fallen by 4,000 points.

Regarding the situation of the US markets, Srivastava says that even on Wall Street, short-term momentum indicators are giving 'sell' signals and it seems that the US markets have reached their highest level. At present, all three major benchmark indices of Wall Street are trading at or close to their all-time high levels.