Nifty, Nifty Bank Under Pressure: Key Supports at Risk

Indian benchmark indices came under renewed selling pressure today, snapping a short-lived recovery as Nifty and Nifty Bank tested crucial technical levels. With short-term indicators turning cautious, market sentiment appears to be shifting from a buy-on-dip to a sell-on-rise approach.

 Nifty Technical Analysis

Nifty closed at 25,111.45, down 0.40%, retreating from the resistance zone of 25,240–25,250, a level that has consistently restricted upside in recent sessions.

• Moving Averages: The index now trades below its 9-day and 20-day EMAs, signaling short-term weakness. However, it still hovers slightly above the 50-day SMA near 25,000.
  
  
• Candle Pattern: A bearish candle was formed, indicating a controlled pullback rather than panic selling. However, the lack of intraday recovery raises concerns.
  
  
• Indicators:
  
  
  • RSI eased to 47, staying below the neutral 50 mark.
    
    
  • MACD histogram continues to print negative bars.
    
    

 Nifty Support & Resistance

• Immediate Support: 25,000 and 24,900
  
  
• Key Resistance: 25,260 (closing basis)
  
  

Unless Nifty manages to close above 25,260, expect a continued downward tilt. Near-term strategy now leans toward selling on rallies.

 Nifty Bank Outlook

Nifty Bank ended the day at 56,828.80, down 0.59%, slipping back from the recent uptrend and snapping a two-day gain streak.

• Bearish Engulfing Pattern: The index formed a strong bearish reversal pattern on the daily chart.
  
  
• Trendline Test: It's approaching a rising trendline and has closed below both the 9-day and 20-day EMAs, while still holding above the 50-day SMA at 56,200.
  
  
• Indicators:
  
  
  • RSI dipped to 52, signaling fading momentum.
    
    
  • MACD remains below the signal line.
    
    

 Nifty Bank Support & Resistance

• Immediate Support: 56,590, followed by 56,200 and 55,950
  
  
• Key Resistance: 57,300 (closing basis)
  
  

Until 57,300 is reclaimed, Nifty Bank is expected to remain under pressure. The technical structure favors a neutral to cautious stance, with intraday rebounds likely to face selling pressure.

Conclusion: Strategy Shift Underway

With both Nifty and Nifty Bank showing signs of fatigue, the earlier buy-on-dip strategy appears to be fading. The market setup now favors a sell-on-rise approach unless key resistance levels are taken out convincingly.

Investors should track support zones closely, as a breach could accelerate the downside. In the absence of strong catalysts, short-term traders are advised to remain cautious and avoid aggressive long positions until confirmation of trend reversal emerges.