Nifty Holds Ground, Nifty Bank Regains Momentum

 Nifty Pauses After Sharp Rally

The Nifty 50 index ended the session slightly lower at 25,936.20, slipping 0.11%, after a narrow-range session that highlighted mild indecision among traders. The index formed a doji candle on the daily chart — a classic sign of temporary equilibrium between buyers and sellers following a strong recovery in recent weeks.

Despite the pause, Nifty continues to hold comfortably above its key short-term moving averages, showing that the broader uptrend remains intact.

On the hourly chart, Nifty maintains a higher-high and higher-low pattern, reinforcing the trend's underlying strength.

• Support: 25,800–25,750 (23.6% Fibonacci retracement zone)
  
  
• Resistance: 26,050–26,100
  
  

Momentum indicators remain supportive of the RSI at 70, signaling steady strength without overbought exhaustion, while the MACD continues to trade in positive territory, confirming bullish undertones.

The India VIX settled at 11.95; a breakout beyond 12.50 could inject short-term volatility in the sessions ahead.

 Nifty Bank Reclaims Upward Momentum

The Nifty Bank index closed at 58,214.10, up 0.17%, after a quiet first half followed by a resilient late-session recovery. The index formed a modest bullish candle on the daily chart, indicating that buyers regained control after intraday consolidation.

Importantly, Nifty Bank continues to trade above its short-term moving average and has defended the 23.6% Fibonacci retracement level near 57,550, reaffirming strong underlying support.

Momentum indicators remain favorable:

• RSI near 73 reflects continued bullish momentum.
  
  
• The MACD remains above the signal line, suggesting the trend remains strong.
  
  

Support levels are placed around 57,800–57,700, while resistance lies between 58,450–58,600. As long as the index sustains above 57,700, traders can maintain a buy-on-dip strategy within the prevailing uptrend.

 Sectoral Snapshot: Broad-Based Strength

• Nifty Private Bank Index: +0.08% to 28,435
  
  
• Nifty PSU Bank Index: +1.21% to 8,087.65
  
  

The gains across both private and public sector banks indicate broad-based participation in the recent recovery, underscoring the sector’s role in supporting market sentiment.

 Outlook: Healthy Consolidation Within a Bullish Structure

Both Nifty and Nifty Bank appear to be in a healthy consolidation phase within their ongoing bullish structure. While some short-term volatility may persist due to low VIX readings, the technical setup favors buying on dips rather than anticipating a deep correction.

As long as key supports hold, the broader trend across indices remains constructively bullish heading into the next series.

 Final Takeaway

After an impressive rally, Indian equity markets are displaying signs of healthy consolidation rather than weakness. Traders should monitor support zones closely, while positional investors can continue to ride the uptrend with a disciplined approach.