Bulls on the Backfoot: Nifty Breaks Key Supports as Bank Nifty Nears Make-or-Break Zone

Nifty Slips Below Key Fibonacci Support

The Nifty 50 index closed at 24,500.90, down 0.85%, extending its corrective phase as bearish momentum gained strength. A decisive red candle formation confirmed the break below the 23.6% Fibonacci retracement level of 24,745, which now acts as fresh resistance.

• Nifty now trades below all major moving averages, except the 200-DMA.
  
  
• The next key support stands at 24,200 (Fibonacci retracement level).
  
  
• RSI has slipped to 40, reversing its recent recovery attempt and falling under the signal line.
  
  
• MACD remains in a negative crossover, with a widening bearish histogram.
  
  

The index has posted consecutive lower closes, indicating a steady decline. Until 24,800 is reclaimed on a closing basis, the outlook remains bearish. Any intraday rebound toward 24,650–24,720 is likely to face stiff resistance.

🔑 Outlook: Sell on rise remains the preferred strategy unless Nifty sustains above 24,800.

Bank Nifty Nears Make-or-Break Zone

The Bank Nifty closed at 53,820.35, losing 630 points (-1.16%), marking its fourth consecutive decline. A broad bearish candle breached important horizontal supports at 54,442 and 54,050, zones that earlier acted as short-term bases.

• Bank Nifty now trades below all major moving averages.
  
  
• The next crucial support lies at the 200-day moving average (DMA) (52,900). A breakdown below this may trigger a deeper downside.
  
  
• RSI slipped below 30, entering oversold territory.
  
  
• MACD shows a strong negative crossover, with the histogram expanding further.
  
  

Any pullback may encounter resistance at 54,250–54,400, which has now become a supply zone. Unless reclaimed on a closing basis, the sell-on-rise strategy remains valid. However, oversold conditions may allow short-term mean reversion or a relief rally.

Technical Outlook: What Traders Should Watch

• Nifty Support Levels: 24,200 and 24,000
  
  
• Nifty Resistance Levels: 24,650–24,720 and 24,800
  
  
• Bank Nifty Support Levels: 52,900 (200-DMA)
  
  
• Bank Nifty Resistance Levels: 54,250–54,400
  
  

With both indices under pressure, traders should remain cautious. Oversold signals may allow minor rebounds, but trend confirmation requires reclaiming key resistance zones.

 Key Takeaway

The market continues to show signs of controlled weakness with technical indicators supporting the bearish outlook. Until the Nifty crosses 24,800 and the Bank Nifty reclaims 54,400, the broader strategy remains to sell on rise.

 Traders should closely monitor support zones (24,200 for Nifty and 52,900 for Bank Nifty), as a breakdown could open the door to deeper corrections.