Nifty Bank forms a prominent bearish candlestick on the daily chart

The Nifty Bank ended the session at 49,922, marking a sharp decline of 2.09% and forming a notable bearish candlestick on the daily chart. The index continues to follow a pattern of lower highs and lower lows, indicating a prevailing bearish sentiment in the near term.

Analyst Mehra noted that the Nifty Bank is approaching a crucial point, as the strong support at 49,530—which has held firm against selling pressure for the past six months—appears increasingly vulnerable. A decisive break below this level could intensify the downward momentum.

The index has also slipped below all key moving averages, while the daily RSI remains subdued below the 40 level, suggesting waning momentum and a lack of any immediate signs of reversal. Short-term pullback trades carry higher risk, as the prevailing trend lacks conviction. Mehra emphasized that a decisive close above 51,000 would be necessary to restore confidence and signal the potential for a more sustained recovery.