Markets Hold Steady: Nifty & Bank Nifty Stay Range-Bound, Eyes on Key Breakouts

Indian equity markets wrapped up Monday on a quiet note, with both the Nifty and Bank Nifty trading within tight ranges. While intraday movements showed brief signs of activity, overall momentum remained muted as traders waited for a clearer direction. That said, the charts still hint at underlying strength, especially as key support levels continue to hold firm.

Nifty 50: Calm on the Surface, But Base Building Beneath

The Nifty ended the day at 25,461.30, barely changed, reflecting a steady consolidation phase. Over the past few sessions, the index has been carving out small-bodied candles—an indicator of indecision. Still, prices continue to float above important short-term averages.

• The 9-EMA and 20-SMA, now sitting around 25,350, are offering immediate support.
  
  
• Another cushion lies near 25,250, which could come into play during any sharp intraday drop.
  
  
• On the hourly chart, Nifty seems to be forming a base at 25,350, lining up with the 23.6% Fibonacci retracement of the recent rally.
  
  

Momentum-wise, the RSI is stable around 60, suggesting a balanced market. Meanwhile, the MACD remains positive, pointing to the potential for upward continuation—if the index breaks out.

 What to watch: A breakout above 25,590–25,610 could ignite the next leg up, with 26,000 in sight.

Volatility remains subdued, with India VIX closing at 12.56, well below the critical 14 mark. This supports a bullish bias, provided there’s a trigger.

 Bank Nifty: Sellers Active, But Buyers Holding the Fort

Bank Nifty slipped 0.15%, finishing at 56,949.20. While the index failed to pick up much momentum, it held above its 20-day SMA and hovered near the 9-EMA, keeping the short-term trend structure intact.

The recent decline has been mild, pausing around the 50% Fibonacci retracement at 56,380—a zone that’s acted as a dependable support in the past. Indicators remain steady:

• RSI is near 58, hinting at neutral sentiment.
  
  
• The MACD continues to stay in positive territory, although lacking fresh traction.
  
  

 For a directional move, 57,200 is the key level to watch. A close above it could open the path to 57,500, possibly 57,700. On the flip side, a break below 56,380 could trigger fresh selling pressure.

 Takeaway: Neutral Territory, But No Signs of Panic

Both indices continue to trade in a tight band, with neither bulls nor bears willing to commit aggressively. However, with important technical levels being respected and volatility under control, the broader bias remains slightly tilted in favor of buyers.

Until a decisive move—either above 25,610 (Nifty) or 57,200 (Bank Nifty)—the market may continue to drift sideways. Traders should stay nimble, focus on key breakout levels, and avoid overcommitting in either direction.