Nifty Stuck in Corrective Range, Direction Still Elusive

Indian equity benchmarks continued to face selling pressure, with the Nifty 50 extending its corrective phase and struggling to find directional clarity. Persistent weakness across technical indicators suggests that the index may remain range-bound in the near term unless key resistance levels are reclaimed decisively.

Nifty 50: Selling Pressure Persists Below Key Averages

Nifty closed lower at 25,585.50, down 0.42%, forming a bearish candlestick where the open and high were nearly identical—highlighting sustained intraday selling pressure. The index continues to trade below the Supertrend, reinforcing short-term bearish bias.

Technically, the benchmark was rejected below the previous session’s low and remains under the 23.6% Fibonacci retracement level at 25,685. Additionally, prices are trading below both the 20-day and 50-day moving averages, keeping the near-term structure under pressure.

Momentum indicators reflect continued weakness:

• RSI has slipped to the 37–38 zone, indicating loss of strength
  
• MACD remains in negative territory, confirming bearish momentum
  

The hourly chart continues to show a clear sequence of lower highs and lower lows, underscoring ongoing corrective behavior. While minor pullbacks have emerged near the 25,500 zone, the lack of follow-through buying suggests limited demand at current levels.

Key Levels to Watch – Nifty 50

• Immediate Support: 25,500–25,470
  
• Below This: 25,350 and lower retracement levels
  
• Immediate Resistance: 25,700–25,770
  
• Trend Relief Only Above: 25,820
  
• Bullish Confirmation: Sustained move above 25,900
  

Until the index reclaims higher resistance levels, the near-term outlook remains restrained, with selling pressure likely to dominate on rebounds.

Nifty Bank: Mild Profit-Taking, Trend Still Supportive

Nifty Bank ended modestly lower at 59,891.35, down 0.34%, after failing to sustain above the psychologically important 60,000 mark. The daily chart formed a bearish candle near higher levels, though the presence of a long lower shadow suggests buying interest emerging on dips.

Despite the pullback:

• The index remains above its 20-day and 50-day moving averages
  
• Daily Supertrend remains positive, indicating broader trend support
  
• However, the index has slipped below the mid Bollinger Band, pointing to a pause in bullish momentum
  

Momentum indicators show cooling strength rather than aggressive weakness:

• RSI has eased to the 57–58 zone
  
• MACD remains below the zero line, but downside momentum appears contained
  

On the hourly timeframe, Nifty Bank continues to trade above its short-term rising trendline and hourly Supertrend, suggesting that the broader structure remains intact.

Key Levels to Watch – Nifty Bank

• Immediate Support: 59,600–59,550
  
  
• Immediate Resistance: 60,100–60,200
  
  
• Breakout Level: Sustained close above 60,200
  
  
• All-Time High Resistance: 60,437
  

Unless the index decisively closes above the 60,100–60,200 zone, Nifty Bank is likely to remain range-bound with a mild corrective bias, rather than triggering a fresh directional rally.

Market Outlook

The broader market continues to remain in a corrective and consolidation phase, with Nifty struggling below key resistance zones and momentum indicators favoring caution. Nifty Bank, while structurally stronger, is showing signs of consolidation after the recent up-move.

In the absence of strong follow-through buying:

• Nifty is expected to remain capped below 25,900
  
  
• Nifty Bank may continue consolidating between 59,500–60,200
  

Traders may prefer a sell-on-rise approach in Nifty, while adopting a range-trading or buy-on-dips strategy in Nifty Bank, with strict risk management until a decisive breakout emerges.