On November 25, Nifty registered its lifetime high of 13,145.85 in the initial minutes of trade and later went through a forceful profit booking and closed below 12,900 levels.

Nifty fully engulfed its previous day's green candle and formed a bearish engulfing candlestick pattern at the lifetime high levels on the daily chart.

Since November 9, momentum oscillator RSI (14) had been reading above 70 levels which is an overbought zone.

But on November 25, it finally closed below 70 levels with a negative crossover. When such technical change occurs, we can expect some more extended profit-booking sessions.

One can call yesterday’s fall an overbought selling as we are not witnessing any weakness on the weekly chart.

Prices on the weekly chart are poised above all the major exponential moving averages.

Bank Nifty has formed a bearish ABCD harmonic pattern on the daily timeframe which is placed near 200 percent retracement from its previous intermediate low of 20,404 levels.

Bank Nifty can extend its profit-booking till 28,000 which is supported by a 21-day exponential moving average. Resistance is pegged near 30,000 levels.