The week has belonged to the bulls so far, as the domestic market remained flat to positive during most of the sessions, with positive price action in individual stocks. Nifty registered a new lifetime high of 12,389 during the week and has been trading with a gain of around 0.81 percent. The Nifty Bank index has been an underperformer since it is trading way lower than its lifetime high and has lost around a percent so far during the week. Until last week, we were of the opinion that until NIfty sustains above the 12,050-mark, there is a possibility of higher levels like 12,300–12,450. Now, the index has almost tested 12,400-mark. Going ahead, a move above 12,400 could extend the rally towards 12,500. But on the upside, 12,400–12,500 could be a supply zone since that is the placement of a rising trend line. Looking at the broader picture, we would like to draw the participants’ attention to an important observation that the weekly and monthly RSI of Nifty is witnessing a negative divergence. As per this observation, one should keep booking profits at higher levels. On the downside, major support is at 12,200. A breach of this level might apply immediate breaks to the ongoing momentum.