Market Mood: Nifty and Bank Nifty Show Strength, but Can Bulls Push Further?

Markets kicked off the week on a strong note, with both Nifty and Bank Nifty ending in the green on Monday. It wasn’t a runaway rally, but it certainly felt like the bulls had the upper hand — at least for now.

Nifty View: A Bounce, Not a Breakout (Yet)

The Nifty closed the day at 25,219.90, up by 159 points or roughly 0.63%. On the surface, that’s a decent gain — but dig a little deeper, and you’ll notice that we’re still within a broader sideways structure.

One interesting setup that’s emerging is the double bottom pattern on the hourly chart. The neckline has been taken out, which usually signals short-term bullishness. That said, there’s a catch — the index is now approaching a key resistance zone around 25,275–25,350.

The RSI is at 52 on the daily chart. Neutral territory, but leaning positive. Price has also managed to hold above the 9-day EMA, but the 20-day EMA is still a bit stubborn — it hasn’t been convincingly breached yet.

What to Watch:

• Resistance: 25,275 to 25,400 — this zone could either act as a speed bump or the launchpad for the next leg up.
  
  
• Support: 25,070 is crucial. Below that, the 24,950 region may come into play.
  
  
• Volatility: VIX is chilling around 10.5 — calm, maybe a bit too calm?
  
  

If you’re trading this, the message is simple: Buy the dips, but don’t get carried away just yet.

Bank Nifty: Quietly Gaining Ground

Now, let’s talk about Bank Nifty, which had a better day than Nifty — closing at 57,210.45, a gain of 452 points (about 0.80%). Unlike Nifty, it managed to reclaim the 20-day SMA and push above the mid-Bollinger Band.

There’s also a quiet strength building up in the momentum indicators. RSI is now at 56 and curling upward — not overbought, but definitely picking up steam.

On the hourly chart, the index bounced cleanly from support and is now pressing against 57,400 — a level that’s been sticky in the past. A strong close above this could bring 57,700 into view.

Key Levels:

• Immediate Resistance: 57,400 (watch for a decisive close above)
  
  
• Support: 56,900 remains the key short-term base
  
  
• Tone: Constructive, as long as we don’t slip below 56,600
  
  

Final Thoughts: The Setup Looks Encouraging, But Stay Nimble

Monday’s price action suggests that buyers are not done yet — but they’ve got some work to do before declaring victory. Both indices are flirting with resistance, and how they behave in the next couple of sessions could set the tone for the rest of the week.

Personally, I’d stay bullish, but not blindly so. If we get clean breakouts with volume, great — ride it. If not, there’s no shame in waiting for clarity. After all, this market isn’t handing out easy money.