Strong Bullish Candle Lifts Nifty Above Key Hurdles

The Nifty index extended its uptrend on Tuesday, closing at 25,239.10, up 169.90 points (0.68%). A strong bullish candle on the daily chart signaled firm continuation of momentum, pushing the index decisively above its recent swing high.

Technical Outlook: Nifty 

Nifty is now trading comfortably above all key moving averages, supported by positive short-term crossovers that further strengthen the outlook. Importantly, the index has sustained above the 61.8% Fibonacci retracement at 24,160, which had acted as a stiff resistance earlier.

Momentum indicators also confirm the bullish tone:

• RSI remains at 63, trending higher.
  
  
• MACD reflects sustained positive momentum.
  
  
• The index continues to hold the upper Donchian channel, signaling persistence of trend.
  
  

Looking ahead, the 25,380–25,450 zone remains the next immediate hurdle. A decisive close above this range could open the path toward 25,500 in the near term. On the flip side, a dip below 25,150 may temporarily slow the rally’s pace. As long as Nifty holds above 25,070, the strategy remains buy on dips while monitoring key resistances.

Technical Outlook: Nifty Bank

The Bank Nifty index also strengthened, closing at 55,147.60, up 0.47%. Notably, the index opened near its intraday low, reflecting steady buying momentum from the outset.

Technical signals are supportive:

• 9-EMA crossover above the 20-EMA highlights improving trend strength.
  
  
• The index is holding around the midline of the Bollinger Band setup, which is beginning to flatten, hinting at potential volatility expansion.
  
  
• RSI has climbed to 55, while the ADX at 23 shows directional momentum is building.
  
  

On the downside, immediate support lies in the 54,700–54,600 band, aligned with the 20-day moving average. Resistance is placed at 55,500–55,600, and a close above this level could trigger an extended rally. As long as Bank Nifty sustains above 54,600, the outlook remains constructive.