Nifty Loses Grip at the Top as Pullback Unfolds

The Nifty index slipped into a mild correction on Tuesday, closing at 25,202.35, down 0.49%. After holding steady during the first half, the index witnessed profit booking from higher levels, resulting in a bearish candle with wicks on both sides, a clear reflection of indecision at current levels.

Nifty Overview

• Close: 25,202.35 (-0.49%)
  
  
• Pattern: Bearish candle with upper and lower shadows (indecision signal)
  
  
• Support & Resistance:
  
  
  • Immediate cushion at 9-EMA (25,180)
    
    
  • Key support at 20-EMA (24,900) and 50-EMA (24,650)
    
    
  • Fibonacci retracements: 23.6% at 25,200 (being tested) and 38.2% at 25,050 (next support)
    
    

Indicators remain supportive, though momentum is cooling:

• RSI has eased to 58, slipping from overbought territory, indicating consolidation.
  
  
• MACD remains in a positive crossover, confirming the broader bullish setup.
  
  

 Takeaway: Unless Nifty posts consecutive closes below 25,000, the primary trend remains bullish. The current pullback looks like a healthy pause after the sharp rally, with supports holding strong.

Nifty Bank Overview

The Nifty Bank index ended at 55,284.75, down 0.31%, extending its short-term correction for a second day. The index formed a bearish candle with a long upper shadow, signaling selling pressure at higher levels.

• Key Levels:
  
  

  • Holding above the 9-EMA and 20-EMA (recent breakout zone) is critical.
    
    
  • A decisive close below this zone could invite further weakness.
    
    
  • Fibonacci support at 55,250 is being tested.
    
    
  • On the upside, a close above 55,700 is needed to revive bullish momentum.
    

• Indicators:

  • RSI slipped to 54, signaling cooling momentum.
    
    
  • MACD remains positive, though the histogram is flattening, suggesting a loss of pace.
    
    

Takeaway: While the primary trend stays bullish, Nifty Bank is likely to consolidate in the near term. Sustaining above 55,250–55,300 is key for stability, while only a breakout above 55,700 can restart the uptrend.

Market Outlook

Both Nifty and Bank Nifty are witnessing healthy profit booking after strong rallies. Supports are intact, and the broader trend remains bullish. The market may consolidate in the short term, offering opportunities to buy on dips as long as key retracement levels hold firm.