Nifty and Bank Nifty Consolidate Near Elevated Levels as Momentum Takes a Breather

Indian equity benchmarks witnessed a pause in momentum as both Nifty 50 and Bank Nifty consolidated near higher levels following their recent up-move. The lack of strong follow-through suggests a healthy digestion phase rather than a trend reversal.

Nifty Outlook: Range-Bound Consolidation Continues

Nifty ended the session at 26,027.30, marginally lower by 0.08%, as the index struggled to sustain near intraday highs. Trading activity remained subdued, with the index oscillating within a narrow range indicating consolidation after the recent rally.

From a technical perspective, the broader structure remains constructive. Nifty continues to trade above the middle Bollinger Band, reinforcing the underlying uptrend. The hourly Supertrend near 25,900 is acting as immediate support, while short-term moving averages remain positively aligned.

Momentum indicators reflect neutrality rather than weakness. The RSI hovering around 54 signals balanced momentum, while a flat MACD suggests a pause in trend acceleration rather than a reversal.

Key Levels to Watch – Nifty

• Support: 25,850–25,800 (crucial closing base)
• Resistance: 26,150–26,220 (overhead supply zone)

As long as Nifty holds above the 25,800 zone, the broader outlook remains positive. A decisive close above 26,220 will be essential to reignite upside momentum and open the path toward higher levels. Until then, the index is likely to remain range-bound, with a buy-on-dips strategy preferred near key supports.

Bank Nifty Outlook: Healthy Pause After Rally

Bank Nifty closed at 59,461.80, gaining 0.12%, extending its consolidation phase after a strong recent rally. The index traded within a tight band throughout the session and managed to sustain above previous support levels.

Technically, Bank Nifty continues to display relative strength. The 9 EMA and 20 EMA are trending higher and are placed comfortably below current levels, maintaining a bullish short-term structure. Additionally, the index remains above the daily Supertrend, providing a strong positional foundation.

Momentum indicators remain supportive. The RSI near 60 reflects steady buying interest, while the MACD shows mild cooling after its recent expansion—typical of consolidation following a sharp move.

Key Levels to Watch – Bank Nifty

• Support: 59,100–58,800 (crucial demand zone)
• Resistance: 59,700–59,850 (breakout trigger)

As long as Bank Nifty holds above 58,800, the broader trend remains bullish. A sustained close above 59,800 could pave the way for the next leg of the rally in the coming sessions.

Market View

Both Nifty and Bank Nifty are undergoing healthy consolidation at elevated levels, indicating strength rather than exhaustion. This time-wise correction is helping absorb supply and build a base for the next directional move.

• Nifty remains range-bound but structurally positive
• Bank Nifty shows relative strength with a bullish bias
• Momentum pause signals consolidation, not reversal

Until a clear breakout emerges, markets are likely to reward selective positioning and disciplined buying near supports.