Nifty Remains Muted While Nifty Bank Shows Signs of Strength

Market Overview

Indian equity benchmarks traded in a subdued session, with Nifty consolidating in a narrow range, while Nifty Bank outperformed and showed early signs of stabilisation. Market participants remained cautious amid the absence of potent directional triggers, resulting in muted volumes and range-bound price action.

Nifty Outlook: Consolidation Continues Amid Indecision

The Nifty index ended the session at 25,938.85, marginally lower by 0.01%, reflecting a quiet and directionless trading day. The index formed a classic doji candle on the daily chart, highlighting indecision following the recent short-term correction from higher levels.

Technically, Nifty continues to trade below the short-term exponential moving averages (9-day and 20-day EMAs), while still holding above the 50-day simple moving average (SMA), a sign that the broader trend remains intact despite near-term weakness. The index recently reversed near the 61.8% Fibonacci retracement level around 25,920, which has emerged as a crucial reference point during the pullback.

The daily Supertrend indicator remains positive, with the trailing stop placed near 25,650, suggesting that the medium-term trend has not yet turned bearish. Meanwhile, the Relative Strength Index (RSI) is hovering near 49, indicating neutral momentum and the absence of strong directional bias.

From a support-resistance perspective:

• Immediate Support: 25,850–25,900 zone (aligned with Fibonacci support)
• Immediate Resistance: 26,000–26,050
• Higher Resistance: 26,150

Overall, Nifty remains firmly in a consolidation phase, marked by consecutive narrow trading ranges and repeated small-bodied candles. This price behaviour indicates a lack of follow-through buying or selling and suggests that the index is awaiting a decisive trigger.

Nifty Bank Outlook: Strength Re-emerges After Recent Weakness

In contrast, Nifty Bank ended the session on a stronger note, closing at 59,171.25, up 0.41%. The index formed a bullish daily candle and displayed a double-bottom formation, indicating improved participation and stabilisation after recent weakness.

Nifty Bank recovered smartly from early intraday lows and settled higher, reflecting better sentiment compared to previous sessions. The index is currently trading between the lower and middle Bollinger Bands, placed near 58,780 and 59,200, respectively, suggesting a gradual shift toward equilibrium.

Technically, Nifty Bank has regained ground above:

• 20-day SMA
• 50-day SMA
• 23.6% Fibonacci retracement level

This recovery signals improving short- and medium-term strength. However, the index continues to trade below the 10-day EMA, indicating that near-term momentum remains selective and not yet fully confirmed.

The daily RSI has moved back above the midpoint and is currently placed near 53, reflecting stabilisation after the recent pullback.

Key levels to watch:

• Immediate Support: 58,800–58,750
• Immediate Resistance: 59,400
• Major Resistance: 59,500

Market Outlook

Overall, the market remains in a mixed and range-bound phase. While Nifty continues to consolidate with muted momentum, Nifty Bank is attempting to reclaim strength and may outperform in the near term if support levels hold.

In the short run, Nifty is likely to remain confined within its defined range unless it decisively crosses the 26,000–26,050 resistance zone. Meanwhile, Nifty Bank may continue to oscillate within a broader range, with a sustained move above 59,500 required to confirm a stronger bullish reversal.