Nifty Bank prediction tomorrow, June 20: Index forms mild bearish candle; Check key levels

Market analyst Vipin Dixena noted that Nifty Bank Index formed a mild bearish candle as selling pressure emerged near recent highs.

“The index continues to hover near its recent consolidation zone, showing signs of hesitation. Currently, it is trading below its key moving averages in short term charts, which acts as a crucial support level,” he noted.

Analyst Vipin Dixena noted that a breakdown has been observed today, and the index might slide further downside toward the next key support zone near 55,000.

“The RSI stands at 50.66, reflecting neutral momentum. This indicates a lack of strong buying or selling conviction, with the index at a potential turning point. A move below 50 may signal weakness,” he said.

In the short term, traders should watch for a decisive move above 56,000–56,300 for bullish continuation, or below 55,500 for a corrective pullback, Dixena noted.

Nifty Bank outlook

Brokerage house Bajaj Broking noted that from a structural standpoint, a sustained breakout and close above the 56,000 psychological marks would be essential to unlock further upside potential, with the index likely to gravitate towards the 56,600–57,000 resistance zone.

However, as per the brokerage house, a failure to clear this overhead supply zone could result in continued range-bound action, with price oscillating between 56,000 and 55,000, shifting market attention to stock-specific alpha generation.

“On the flip side, a decisive break down below the 55,000 levels would negate the ongoing consolidation structure and trigger a corrective move towards the critical support cluster at 54,500–54,000. This zone represents a confluence of the 50-day Exponential Moving Average (EMA) and the key Fibonacci retracement zone of the prior impulse leg (53,483–57,049),” Bajaj Broking noted.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)