Nifty Recovers from Intraday Lows but Trend Remains Cautious; Bank Nifty Eyes Resistance Near 60,000

Nifty Rebounds 1.17% After Recent Decline

The Nifty 50 index staged a notable recovery in the latest trading session, closing at 24,765.90, up 1.17%, after bouncing back from an intraday low near 24,529. The index opened on a firm note and gradually extended its gains throughout the day, ending in positive territory after the sharp sell-off in the previous session.

On the daily chart, Nifty formed a positive candlestick, indicating a temporary pause in the recent downward momentum. However, the broader trend remains cautious as the index continues to trade below key moving averages, suggesting that the ongoing correction has not yet fully reversed.

Key Resistance Zone for Nifty Near 25,000–25,141

From a technical perspective, an unfilled gap between 24,990 and 25,141 remains on the chart. This region is expected to act as a major resistance zone in the near term, as gap areas often attract supply when prices attempt to move higher.

Key Levels to Watch for Nifty

Support Levels

• 24,500
  
  
• 24,450
  
  

Resistance Levels

• 25,000 (psychological level)
  
  
• 24,990–25,141 (gap resistance zone)
  
  

A decisive move above the 25,000 level could strengthen bullish momentum and potentially push the index toward the gap resistance zone.

Momentum Indicators Show Mild Improvement

Technical indicators are showing early signs of stabilization, although a confirmed reversal has not yet emerged.

• The Relative Strength Index (RSI) is currently around 37, improving slightly from the recent oversold zone.
  
  
• On the Directional Movement Index (DMI), the –DI line continues to remain above the +DI line, suggesting that sellers still maintain a relative advantage in the market.
  
  

Meanwhile, India VIX declined by 15.53% to 17.85, indicating that market nervousness has eased slightly, although volatility remains relatively elevated compared to typical levels.

Given the current structure, as long as Nifty sustains above 24,550, traders may consider a buy-on-dips strategy for short-term opportunities.

Bank Nifty Recovers from Day’s Low but Faces Resistance Ahead

The Nifty Bank index also witnessed a recovery during the session, closing at 59,055.85, up 0.51%, after rebounding from an intraday low near 58,506.

The index remained under pressure during the first half of the trading session but saw a strong second-half recovery, allowing it to recover a large portion of the earlier losses and finish the day marginally higher.

Bank Nifty Technical Analysis: Bollinger Band Signals Possible Mean Reversion

Currently, Bank Nifty is hovering near the lower Bollinger Band around 59,160, indicating that prices are stretched toward the lower end of the recent trading range.

Such positioning often signals the possibility of a mean-reversion bounce, although confirmation would require the index to move back toward the middle Bollinger Band near 60,550.

Key Levels for Bank Nifty

Support Levels

• 58,500
  
  
• 58,400
  
  

Resistance Levels

• 59,400–59,600
  
  
• 59,800–60,000
  
  

A sustained move above 59,600 could trigger a gradual recovery toward the 59,800–60,000 resistance zone.

Momentum Indicators Still Show Weakness

Despite the recovery, technical indicators suggest that bullish strength remains limited.

• The RSI is placed near 39, indicating that momentum remains weak despite the bounce.
  
  
• On the DMI indicator, the –DI line continues to stay above the +DI line, highlighting ongoing selling pressure.
  
  

This suggests that while a technical rebound may be underway, the broader market structure still remains cautious until stronger confirmation appears.

Market Outlook

Both Nifty and Bank Nifty showed signs of recovery from their intraday lows, indicating that buyers are defending key support levels. However, both indices continue to trade below important technical levels, keeping the broader outlook cautious.

Key Triggers Ahead

• Nifty needs to reclaim 25,000 to strengthen bullish momentum.
  
  
• Bank Nifty must move above 59,600 to extend the recovery trend.
  
  

Until these levels are decisively breached, the market is likely to remain volatile with a cautious trading bias.