Mumbai, Feb 21 (IANS): The Indian market is facing stiff resistance at higher levels; the valuation of a broader index is at a significant premium, leading to an unfavourable risk reward, which influences investors to book profits, said Vinod Nair, Head of Research at Geojit Financial Services.

Global markets traded cautiously awaiting the US Fed minutes, while Chinese markets were buoyed by policy interventions. Concerns lingered since investors were heavily betting on a US FED rate cut, which is put at risk by January's higher-than-expected inflation, Nair said.

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, said 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; a decisive drop below this level could lead the index towards 21,700. On the upside, resistance is identified at 22,160, De said.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said 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.