Nifty Extends Rally with Eight Consecutive Gains; Bank Nifty Near Key Resistance Levels

Nifty Market Overview

The Nifty index closed at 25,114.00, gaining 0.43% on Friday, extending its winning streak to eight consecutive sessions. Weekly, Nifty advanced 1.51%, reflecting consistent momentum and strength above the 25,000 mark.

The index is now approaching the 61.8% Fibonacci retracement level at 25,160, a critical breakout zone that could shift focus toward higher resistance levels.

• Daily Chart: Nifty trades firmly above its short-term moving averages, signaling a constructive bias.

• Hourly Chart: Displays higher highs and higher lows, confirming a short-term bullish trend.

• Momentum Indicators:
  • RSI: Strengthened to 61, confirming improving momentum.

  • MACD: Positive crossover with bullish histogram bars, reinforcing the uptrend.

 Key Levels to Watch:

• Immediate Support: 24,980–24,920

• Upside Target: A breakout above 25,160 could open the way for 25,250–25,350.

The broader outlook remains bullish, with a buy-on-dips strategy favored as long as Nifty holds above the 24,900 support zone.

 Nifty Bank Performance

The Nifty Bank index ended at 54,809.30, up 0.26%, forming a positive daily candle and extending its gains. On a weekly basis, the index added 1.28%.

Currently, Bank Nifty is trading near the 50% Fibonacci retracement level at 54,850, which has emerged as a crucial resistance zone. Sustaining above this level could pave the way toward higher retracements at 55,170 (61.8%) and 55,500 (78.6%).

• Momentum Indicators:
  • RSI: Advanced to 50, signaling a gradual pickup in strength.

  • MACD: Positive crossover supported by bullish histogram bars.

• Moving Averages:
  • Index is holding above the 9-EMA and 20-EMA, indicating short-term strength.

  • The 50-DMA remains a key hurdle to cross for further momentum.

 Key Levels to Watch:

• Immediate Support: 54,500–54,400

• Immediate Resistance: 55,100–55,250

• Upside Potential: A close above 55,100–55,250 could accelerate the move toward 55,500.

If Bank Nifty fails to clear resistance, range-bound consolidation may persist. However, as long as 54,300 holds, the buy-on-dip strategy remains intact.

Market Sentiment & Strategy

• Nifty Outlook: Momentum remains strong with eight consecutive gains, and a decisive breakout above 25,160 could extend the rally.

• Bank Nifty Outlook: The trend is improving, but a sustained close above 55,100–55,250 is required for stronger upside momentum.

Strategy: Traders may continue with a buy-on-dips approach while keeping key support zones in focus.