Bulls Turn Cautious as Nifty Faces Resistance Near 25,250

The domestic equity market showed signs of fatigue at higher levels as Nifty ended the session marginally higher at 25,108.30, up 0.12%, after testing the upper resistance band near 25,220, a level that has consistently acted as a strong hurdle in recent weeks.

On the daily chart, the index formed a shooting star candle, signaling intraday rejection from higher levels and suggesting mild exhaustion in the ongoing uptrend. The Supertrend indicator is positioned near 25,180, aligning closely with the upper resistance zone. Meanwhile, the RSI remains at 56, holding above the neutral 50 mark, and the MACD continues to hover near a bullish crossover, maintaining a neutral-to-bullish bias.

Immediate support for the Nifty is placed around 25,000, followed by 24,880, while key resistance remains firm at 25,200–25,250. A decisive close above 25,250 could signal a continuation of the short-term uptrend. Conversely, a failure to sustain above this zone may lead to a minor retracement toward lower support levels.

The broader market outlook remains positive but appears slightly stretched. Traders should expect choppy intraday moves or brief pullbacks as the index consolidates near the peak.

Nifty Bank: Sixth Straight Gain, But Signs of Hesitation Emerge

The Nifty Bank index extended its winning streak to a sixth consecutive session, ending at 56,239.35, up 0.24%. However, the formation of an inverted hammer candle on the daily chart indicates intraday hesitation after a strong upward rally a technical signal that suggests mild caution as the index nears its resistance zone.

The index continues to trade comfortably above all major moving averages, underscoring short-term strength. The Bollinger upper band, currently placed near 56,250, was marginally tested during the session, hinting at a potential pause if follow-through buying fails to materialize.

The RSI at 64 remains well within the positive territory, while the MACD maintains its bullish crossover, reaffirming momentum strength.

On the downside, support levels are seen near 55,800, followed by 55,500, whereas resistance is expected around 56,500–56,700, as indicated by Fibonacci projections. Although the broader trend remains bullish, the inverted hammer pattern coupled with an extended short-term rally calls for measured caution at elevated levels.

Key Takeaways

• Nifty faces stiff resistance near 25,200–25,250, with short-term momentum appearing overextended.
  
  
• Nifty Bank sustains its bullish structure but shows signs of consolidation near resistance.
  
  
• Indicators such as RSI and MACD suggest momentum remains intact, though profit booking at higher levels cannot be ruled out.
  
  
• Overall market tone stays positive, but volatility may rise as indices trade close to upper resistance zones.