NiftyBank slipped 307 points, or 1.01 per cent, to close at 30,223.40 on Thursday after rising above its previous all-time high of 30,648. It is witnessing selling pressure above 30,600 - a level which the index has scaled thrice in the current month. The Bearish Engulfing Candlestick pattern suggests any breach of 30,150 levels may further trigger a fall to its support of 30,000 levels.

Although, Nifty Bank is well positioned above 29,800 on closing basis, the index needs to hold a range of 30,150 – 30,000 to create an intra-day base for trading.

RSI (Relative Strength Index) and MACD (moving average convergence and divergence) - the major technical indicators - are trading with negative crossovers as per daily chart pattern. This is a scenario where traders should pullback their buying bets and wait for the index to reverse from the much-needed support. CLICK HERE FOR DETAILED CHART VIEW

The overall trend remains optimistic till index trades above 29,800 on closing basis. Buying was seen around the same level in the last week. The weekly chart further suggests the overbought situation for RSI and Stochastic indicators. Both are trading above their relevant overbought territory, reading at 70 and 80 respectively. In this case, Stochastic has made a negative crossover however, RSI still forging an uptrend.