Can Bank Nifty lift the spirits of bulls? Know the key levels to watch out for today!

A move above 32,890 is positive and it can test 5-EMA of 33,189.

After a sharp decline, Bank Nifty was able to close in the green on Friday. It closed at the lowest level after May 2021, which is below the prior swing low.  

On a 75-minute chart, it formed a base and closed near the breakout level. The long-term chart shows weakness. However, the short-term looks a bit tilted in favour of bulls. The daily RSI is bouncing from the oversold condition, and the momentum is flat. The 75-minute MACD has given a bullish signal and shows a positive divergence.  

A move above 32,890 is positive and it can test 5-EMA of 33,189. The 23.6 per cent retracement level is also at the same level as 33,186. Above this level, it can test Thursday's high of 33,756, which is also the 38.2 retracement level (33,739). As long as the level of 32,290 is protected, these levels will be tested. Only a fall below 32,290 will be negative. Try to avoid creating fresh shorts for the time being.