How did the Nifty Bank perform yesterday?
The Nifty Bank index opened on a positive note at 58,191.45 and witnessed profit booking after testing higher levels during the session. The index touched an intraday high of 58,318.05, slipped to a low of 57,637.25, and eventually settled at 57,727.35, down 449.70 points (-0.77%). The formation of a long bearish candle near the recent swing high suggests that selling pressure emerged after an extended recovery, indicating short-term exhaustion among bulls. Despite the decline, the index continues to trade above the 10- and 21-DMA, reflecting that the broader recovery structure remains intact. However, the rejection near higher levels points to caution, as traders preferred to book profits ahead of a key resistance zone.
The RSI is placed around 61.92, remaining above the neutral 50 mark, which indicates that bullish momentum is still present despite the latest correction. However, the RSI has started to ease from recent highs, hinting at a moderation in upward momentum. Meanwhile, the MACD remains in positive territory, with the MACD line above the signal line, although the histogram has begun to contract, suggesting that bullish momentum is gradually losing strength. These indicators collectively point toward a healthy pullback rather than an outright trend reversal, but confirmation from upcoming sessions will be crucial.
