Nifty Ends Lower as Bearish Engulfing Candle Signals Pause in Momentum

The Nifty 50 index opened the day on a firm note but struggled to maintain its early gains, eventually closing at 25,145.50, down 0.32%. On the daily chart, the index formed a bearish engulfing candle, indicating a possible temporary pause in the recent upward momentum. The middle Bollinger band, located near 25,050, is expected to act as a key support zone for the index.

Technical Overview of Nifty

Despite the decline, Nifty continues to hold above all major moving averages. However, the narrowing gap between the 9-EMA and 20-EMA suggests that momentum is gradually cooling. The Relative Strength Index (RSI) sits at 55, remaining above the neutral zone, while the MACD continues in positive territory, suggesting the broader trend remains intact.

Currently, the trend is cautiously positive, with resistance seen in the 25,200–25,280 range. Key support levels are at 25,000 and 24,950, aligning with the 50% Fibonacci retracement level. Meanwhile, the India VIX closed at 11.33, indicating moderate volatility, and a move above 12 could trigger higher short-term market fluctuations.

Bank Nifty Analysis

The Bank Nifty ended the session at 56,496.45, down 0.23%, encountering mild resistance near recent highs. The index formed a bearish candle, reflecting a pause in momentum after a steady upmove in the past few sessions.

The Bank Nifty remains above the breakout zone near 56,150, highlighting stability in the broader trend. Trading above all major moving averages, the index is approaching resistance at the upper Bollinger band, around 56,900.

The RSI eased to 64, indicating a slight cooling in momentum, while the MACD continues in positive territory, supporting a balanced outlook. Key support levels for Bank Nifty remain at 56,150–56,000, with resistance near 56,900.

Overall, the Bank Nifty maintains a neutral to steady outlook, suggesting a period of consolidation rather than a reversal.

Conclusion

Both Nifty and Bank Nifty indicate a temporary pause in bullish momentum, with technical indicators pointing toward consolidation. Traders and investors should watch key support and resistance levels closely, along with market volatility as indicated by the India VIX, before making strategic moves.