Nifty Holds Steady Amid Range-Bound Trade; Bank Nifty Consolidates Within Flag Pattern

Overview

Indian equities traded in a range-bound manner on Monday, with Nifty closing at 25,574.35, up 0.32%, after a stable session that began with strength, where the open and low matched at 25,503.50. Despite limited participation, the broader market maintained a steady tone, reflecting cautious optimism among traders.

Nifty Technical Outlook

The Nifty 50 formed a small bullish candle on the daily chart, defending key technical zones and suggesting stability at lower levels.

• The index successfully held above the 38.2% Fibonacci retracement level at 25,520, which coincides with the daily Supertrend support.
  
  
• It rebounded after briefly testing the 50% retracement zone, showing signs of strength near intermediate supports.
  
  

On the upside, the 9-EMA near 25,650 acts as a critical short-term resistance, confining the index within a broad range of 25,350–25,750.

Momentum Indicators:

• RSI around 52 indicates a mild pickup in momentum.
  
  
• MACD remains below the signal line, implying that recovery attempts could stay capped unless a breakout occurs.
  
  

Key Levels to Watch:

• Support: 25,520 – 25,350
  
  
• Resistance: 25,650 – 25,750
  
  

A buy-on-dip approach remains favored only above 25,500, while a decisive close above 25,750 would be needed to confirm a meaningful upside move.

Nifty Bank Outlook

The Nifty Bank index ended the session marginally higher at 57,937.55, up 0.10%, with the open and low levels matching, signaling steadiness near its support base.

The index is currently moving within a flag formation, indicating a consolidation phase after the recent rebound.

Technical Highlights:

• The index continues to hold above its 9-day EMA (57,800), acting as a short-term support.
  
  
• The RSI around 60 has shown a mild uptick, suggesting a gradual improvement in buying momentum.
  
  
• However, the MACD continues to trade below the signal line, indicating a cautious undertone among traders.
  
  

Key Levels to Watch:

• Support: 57,600 – 57,500
  
  
• Resistance: 58,100 – 58,300
  
  

As long as Bank Nifty sustains above 57,600, the index is expected to consolidate within the flag pattern. A breakout above 58,250 would confirm resumption of the uptrend, potentially opening the door for a move toward the 58,800–59,000 zone.

Market Outlook

The overall market setup remains neutral to mildly bullish, with range-bound activity likely to persist until a decisive breakout. Traders are advised to:

• Maintain a buy-on-dip strategy only above 25,500 (Nifty) and 57,600 (Bank Nifty).
  
  
• Watch for breakouts above key resistance levels before taking aggressive long positions.
  
  
• Stay selective and focus on sectoral strength, particularly in banking, FMCG, and auto names, where momentum is gradually improving.