Bulls Make a Subtle Comeback as Nifty Reclaims Momentum

The domestic equity markets witnessed a positive close on Thursday, with the Nifty 50 regaining upward momentum after a subdued performance in the previous session. The index climbed 0.54% to end at 25,181.80, forming a bullish candle on the daily chart and signaling renewed buying interest at lower levels. The broader setup now suggests that the index is attempting to establish a firm base above its short-term moving averages.

Technical Overview: Nifty Shows Signs of Base Formation

On the hourly chart, Nifty displayed strength after forming a double-bottom pattern near the 25,050 zone, a key reversal signal for short-term traders. The mid-Bollinger Band, positioned around the same level, continues to act as a dynamic support area for near-term dips.

Momentum indicators also support this recovery:

• The RSI has climbed to 58, maintaining its upward slope from the neutral zone, a sign of improving strength and growing bullish sentiment.
  
  
• The MACD has registered a mild positive crossover, with histogram bars turning green, hinting at a gradual buildup in momentum.
  
  

On the downside, 25,000 remains a crucial support zone, while a sustained close above 25,220 could open the door for a move toward higher resistance levels. In the short term, traders can adopt a buy-on-dips approach, focusing on accumulation near support zones.

Nifty Bank: Resilience Returns Above Key Support

The Nifty Bank index also joined the uptrend, gaining 0.31% to close at 56,192.05, after briefly pausing in the previous session. The index formed a bullish candle on the daily chart and successfully defended the prior day’s low, a sign that buyers continue to step in at key levels.

Importantly, the index’s recent breakout above 55,835 — which had earlier acted as a resistance — now serves as a strong support base. The short-term moving averages are aligned in favor of the bulls, with a bullish crossover of the 9-EMA and 20-EMA over the 50-EMA, confirming continuation of the near-term uptrend.

The RSI has moved up to 63, reflecting healthy momentum and sustained buying interest. On the upside, a decisive close above 56,300 could trigger a move toward the 56,550–56,700 zone. Immediate support is seen between 55,900 and 55,800, and as long as these levels hold, the short-term outlook remains constructive.

Market Outlook: Bias Turns Positive

The overall market structure indicates that both Nifty and Nifty Bank are attempting to regain directional strength after a phase of consolidation. Momentum indicators, along with the price setup, are hinting at a gradual shift toward bullish sentiment.

With key support zones intact and improving breadth across major indices, the broader market bias appears positive in the near term. Traders can look to buy on declines, especially near support levels, while watching for a breakout above 25,220 on Nifty and 56,300 on Nifty Bank for confirmation of the next upward leg.

Key Levels to Watch

Market Sentiment: Mildly positive
Trading Strategy: Buy on dips near support levels
Immediate Bias: Bullish above 25,000 / 55,800