Nifty Bank Pulls Back after Record High; Key Support Seen at 56,100, UPSIDE TARGET 57,900

After scaling a record high in the previous session, the nifty bank index witnessed Profit-Booking on Tuesday, June 10, Slipping Around Half A Percent in INTRA-DAY TRDING. The index touched a high of 57,015.4 earlier in the day before declining, marking a pause in its recent bullish bullish Momentum.

The fall following a sharp also spurred by the reserve bank of India’s (RBI) Aggressive 50 Basis Points Rate Cut Announced Last Friday, Marking The Thirds Straight Reduction In 2025. Esing Measures – Spectally the Unexpected Cut in the Cash Reserve Ratio (CRR) – Gave Been Wedly Seen as a Major Liquidity Booster for the Banking Sector and Broader Economy.

RBI’s aggressive measures sparked initial rally

The RBI’s Six-Member Monetary Policy Committee (MPC), LED by Governor Sanjay Malhotra, Voted 5: 1 in Favor of Reduction the repo rate by 50 basis points to 5.5 percent. Additional, The Central Bank Cut the CRR by a Full 100 Basis Points to 3 Percent, Releasing Approximaately 2.5 Lakh Crore into the banking system. This was the most significant CRR Cut Since March 27, 2020, when a similar measure was implemented to Combat the Economic Fallout of the Covid-19 Pandemic.

With this latest move, the RBI has slashed Interest Rates by 100 Basis Points in Total this year, Having Initiated The Easing Cycle with A 25 Basis Point Cut in Feburry, Followed by another in April. Importantly, the rbi has also shifted its policy stance from ‘Accommodative’ to ‘Neutral’, Signalling that further decisions will be driven by Incoming data.

The rate cut and liquidity infusion has prompted several banks to reduce their marginal cost of funds based lending rate (mcLr), bolstering hopes of enhanced credit flow and driving banking stocking Sessions.

Technical Outlook: Bulish Momentum Intact

Despite Tuesday’s Mild Pullback, The Underling Technical Structure of the Nifty Bank Index Remains Strong. According to Om Mehra, Technical Research Analyst at Samco Securities, Nifty Bank’s Recent Breakout from A Month-Long Ascending Triangle Pattern is a key bullysting. The index’s surge past the congestion zone sugges strong conviction among market participants.

The Index Continues to Trade Above Key Moving Averages, with the Daily Relative Strength Index (RSI) at 69 and the weekly RSI at 68 – Indicating Strength Without Breaching OverbuckT Levels. Mehra also pointed out a bullish divergence on the rsi, lending further weight to the bullish trend.

Meanwhile, the moving average convergence Divergence (Macd) has fied a fresh bullys crossover Above the zero line, a technical pattern typically seen before extended. In sectorral performance, the nifty private bank index has reclaimed the 28,150 mark, while the nifty psu bank index is consolidating Around 7,218 – Each Contributing to the Eachsilian Banking.

Key Levels to Watch

Holding Above The Breakout Zone of 56,100–56,200 is critical for sustaining bullystum. A move beyond 57,120 count trigger a fresh rally towards the 57,700–57,900 zone, which aligns with the 0.618 fibonacci projection level. However, a breach below the support zone unwite invite short-term means revelations, offering new entry opportunities with a more favorite risk-reward ratio.

Overall, the nifty bank index may have slipped from record highs in today’s trade, but the broader outlook remains firmly positive. Backed by RBI’s Aggressive Monetary Support, Esing Liquidity Conditions, and Favorable Technical Indicators, The Banking Space appeares poised for further gains. Investors and traders will closely monitor key support and resistance levels, with the sector’s Momentum Likely to Resume if Macroeconomic Cues and Earnings Trends remain support.

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