Nifty Rebounds Nearly 1% After Recent Slump; Bank Nifty Jumps 931 Points | Stock Market Today

Nifty Recovers From Oversold Levels

The Nifty 50 index staged a strong rebound, ending the session at 24,261.60, up 233.55 points (0.97%). The recovery came after the index witnessed a sharp corrective phase in previous sessions. During the day, Nifty bounced back from lower levels and managed to close near the higher end of the session’s range, indicating improved buying interest.

The rebound suggests that short-term bargain buying and short covering emerged after the recent decline.

Nifty Technical Analysis: Bollinger Band Support Holds

On the daily chart, Nifty rebounded after testing the lower Bollinger Band near 24,126, which acted as an immediate support level during the recent selloff.

The index is now approaching the 0.236 Fibonacci retracement level near 24,322, which is emerging as the first technical hurdle for the ongoing recovery.

Key Levels to Watch for Nifty

Resistance Levels

• 24,322 (Fibonacci retracement)
• 24,400 – 24,450 (previous support turned resistance)
• 24,600 (if breakout sustains)

Support Levels

• 24,100
• 24,000

A sustained move above 24,322–24,430 could extend the rebound toward the 24,400–24,600 zone, while failure to hold 24,100 may bring back selling pressure.

Momentum Indicators Still Show Cautious Trend

Despite the rebound, the broader trend remains cautious as the index continues to trade below its key moving averages.

Technical indicators reflect mixed signals:

• RSI (Relative Strength Index): Around 34, indicating recovery from the oversold zone
• MACD: Remains in negative territory, suggesting the broader corrective tone has not fully reversed

This indicates that the current move may still be a technical bounce rather than a confirmed trend reversal.

Volatility Eases as India VIX Drops Sharply

Market volatility cooled significantly during the session.

India VIX declined 19.08% to settle at 18.90, indicating that investor nervousness has eased after the recent spike in volatility.

Lower volatility often supports short-term market stabilization, although sustained buying will be required for a stronger recovery.

Bank Nifty Rallies 1.66% After Recent Sharp Decline

The Nifty Bank index also witnessed a strong recovery, ending the session at 56,950.80, gaining 931 points (1.66%).

The index rebounded from lower levels during the session, suggesting buying interest emerging after the recent steep fall in banking stocks.

Bank Nifty Technical Outlook

On the daily chart, Bank Nifty formed a bullish candle and bounced from the lower Bollinger Band, indicating potential short-term stabilization.

The index is now approaching the 200-day moving average near the 57,500 level, which will act as a key resistance zone.

Key Levels for Bank Nifty

Resistance Levels

• 57,500 (200-DMA)
• 57,700

Support Levels

• 56,400

A sustained move above 57,500 could extend the recovery, while failure to hold 56,400 may bring renewed downside pressure.

Momentum Indicators Suggest Correction Still Active

Despite the bounce, momentum indicators indicate that the broader corrective phase is still ongoing.

• RSI: Around 33, suggesting recovery from oversold territory
• DMI Indicator: The negative directional line remains above the positive line, indicating that sellers still maintain an advantage in the broader trend

Market Outlook

Both Nifty and Bank Nifty have rebounded after testing key technical supports, suggesting short-term stabilization after the recent correction.

However, the indices continue to trade below key moving averages, indicating that the broader market trend remains cautious.

In the near term:

• Nifty must reclaim 24,400–24,600 to strengthen bullish momentum.
• Bank Nifty needs to break above 57,500 to extend the recovery.

Until these levels are crossed decisively, markets may remain volatile with intermittent pullbacks.