Market Finds Balance: Nifty and Bank Nifty Rise Together on Calmer Volatility

After a prolonged phase of weakness, Indian equity benchmarks staged a smart recovery, supported by calmer volatility and improving market breadth. Both the Nifty and Bank Nifty ended higher, with bullish technical patterns indicating potential momentum shifts.

Nifty Technical Outlook

The Nifty 50 closed at 24,836.30, up 225.20 points or 0.92%, forming a strong bullish engulfing candle on the daily chart. This rebound came after the index respected its ascending trendline support, a level that has consistently cushioned declines in the past.

• The index is now inching closer to the 50-day SMA, positioned at 24,880, which will serve as a crucial resistance.
  
  
• The RSI has recovered from 38 to 47, signaling renewed strength.
  
  
• The MACD, though still in negative territory, shows signs of contraction, hinting at a potential reversal.
  
  

Key Levels to Watch:

• Support: 24,650
  
  
• Resistance: 24,880 – 24,920. A breakout above this band could open the doors for a retest of higher levels.
  
  

Adding to the comfort, India VIX slipped 7.05% to 10.29, reflecting calmer market sentiment. The improving advance–decline ratio further underlines the positive shift in breadth.

Bank Nifty Technical Outlook

The Nifty Bank index settled at 55,347.95, up 1.30%, forming a strong bullish candle on the daily chart. Importantly, the index managed to close above the 9-SMA, 20-SMA, and 50-SMA, highlighting improved short-term momentum.

• However, the index remains capped below the 100-SMA, which acts as a decisive barrier for confirming a broader uptrend.
  
  
• The RSI has turned upwards to 55, indicating strengthening momentum.
  
  
• The MACD is on the verge of a bullish crossover, indicating the potential for sustained recovery.
  
  

Key Levels to Watch:

• Support: 55,000 (crucial for sustaining the bullish bias)
  
  
• Resistance: 55,700 – 55,800. A breakout here could lead to 56,050 in the near term.
  
  

Adding further strength, the Nifty Private Bank index outperformed, closing at 26,984.60, up nearly 2%, reflecting renewed traction in leading private lenders.

Market Sentiment & Outlook

The simultaneous recovery in Nifty and Bank Nifty, coupled with a decline in volatility, suggests the market is trying to stabilize after persistent weakness. While bulls still face resistance at higher levels, the short-term outlook has improved.

• For Nifty, sustaining above 24,880–24,920 will be the key trigger for continued bullishness.
  
  
• For Bank Nifty, reclaiming 55,700–55,800 is essential to confirm strength.
  
  

Until these levels are decisively taken out, traders may expect range-bound action with a positive bias.