Indices Hold Firm with Nifty and Bank Nifty Poised for Breakout Continuation

The Indian equity markets witnessed strong buying momentum as both Nifty and Bank Nifty extended their winning streaks, reflecting a continuation of bullish sentiment.

Nifty Extends Rally, Breaks Key Resistance Levels

The Nifty 50 index ended the session at 25,585.30, up 1.03%, marking a robust continuation of its recent uptrend. The index opened with a gap-up and maintained its strength throughout the session, decisively breaking above the descending trendline and surpassing the previous swing high near 25,450, a key resistance level.

This breakout has established a higher-high and higher-low formation, reaffirming the prevailing bullish structure. The short-term moving averages are now sloping upward, indicating improving momentum across the board.

The Relative Strength Index (RSI) is placed at 61, continuing to rise steadily without entering the overbought territory, suggesting that there’s still room for further upside.

Key Levels to Watch

• Upside Target: 25,700 in the near term, with broader resistance around 25,800–25,880.
  
  
• Support Zone: Immediate support lies near 25,430, followed by 25,400, which serves as a crucial base.
  
  

The short-term outlook for Nifty remains bullish, and a buy-on-dips strategy is favored as long as the index sustains above the 25,400 mark.

Bank Nifty Near Record Highs; Momentum Strengthens

The Nifty Bank index surged 1.10% to close at 57,422.55, extending its recent winning streak. The index opened higher and maintained strength throughout the session, forming a long bullish candle that underscores strong buying interest across leading banking stocks.

With this move, the index now trades just below its 52-week high of 57,628.40, signaling mounting strength and the potential for a breakout to new record highs.

The short-term moving averages continue to slope upward, reinforcing the positive trend. The RSI stands at 72, reflecting robust bullish momentum, while the MACD fast line continues to head higher — further validating the positive bias.

Banking Sector Performance

• Nifty Private Bank Index: advanced 1.48% to close at 28,136.30.
  
  
• Nifty PSU Bank Index: witnessed mild profit-booking, slipping 0.44% to 7,688.75.
  
  

Key Levels to Watch

• Upside Target: A move above 57,628 could propel the index toward 57,900–58,000 levels.
  
  
• Support Zone: Immediate support is placed around 57,000–56,900.
  
  

The overall structure remains bullish, with the potential for Bank Nifty to set a new record high in the coming sessions.

Market Outlook: Bulls in Control

Both Nifty and Bank Nifty have successfully broken past their resistance zones, confirming a breakout continuation pattern. The broader market sentiment remains positive, supported by:

• Rising short-term moving averages
  
  
• Healthy RSI readings with room for further upside
  
  
• Sustained buying momentum in large-cap and banking stocks
  
  

As long as the benchmarks hold above their respective support levels (Nifty above 25,400 and Bank Nifty above 56,900), the near-term outlook remains constructively bullish. Traders can continue to adopt a buy-on-dips approach, targeting incremental highs in the coming sessions.