Nifty and Bank Nifty Poised for Breakout Continuation: Bullish Momentum Builds Up

Market Overview

Indian equity benchmarks extended their winning streak, with both Nifty 50 and Bank Nifty showcasing strong bullish momentum. Sustained buying interest, favorable technical signals, and a breakout above key resistance levels have positioned the indices for potential continuation of the uptrend.

Nifty Nears Four-Month High – Bulls in Control

The Nifty 50 index registered a robust bullish breakout, edging closer to its four-month high. The index surged 261.75 points to close at 25,585.30, marking a clear continuation of its higher-high and higher-low formation — a classic indicator of sustained upward strength.

Key Technical Insights

• Breakout Confirmation: Nifty decisively broke above the 25,500 resistance zone, signaling strong follow-through momentum.
  
  
• Support Zone: The 25,200–25,300 range now acts as a reliable buy-on-dips pocket for traders.
  
  
• Momentum Indicators: RSI (14) holds above 65, showing healthy bullish momentum without entering the overbought territory.
  
  
• Resistance Levels: Nifty may face mild resistance around 25,650–25,700, but a close above this zone could open the gates toward 25,800 in the short term.
  
  

Derivatives Snapshot

Derivatives data underlines a positive undertone:

• Put Writing Dominance: Strong put writing at 25,300 indicates firm downside support.
  
  
• Open Interest (OI): Significant call OI at the 26,000 strike marks the next resistance zone.
  
  
• Put-Call Ratio (PCR): Surged to 1.54 from 1.23, confirming increasing bullish sentiment.
  
  

Volatility Check

The India VIX edged up by 3.18% but remains near historically low levels, suggesting traders maintain a composed, risk-managed stance. Low volatility often reflects steady accumulation and controlled optimism among participants.

Outlook for Nifty

As long as Nifty sustains above 25,300, the short- to medium-term trend remains bullish. A decisive close above 25,650 could trigger follow-up buying, extending the rally toward 25,800–25,880. Traders can continue to adopt a Buy-on-Dips strategy within the support range.

Nifty Bank Inches Closer to Record Highs

The Nifty Bank index extended its winning streak, climbing 622.65 points to close at 57,422.55 — just shy of its all-time high of 57,628. The strong gap-up opening and firm intraday momentum reaffirmed the continuation of its bullish structure.

Technical Highlights

• Breakout Zone: The index has sustained a move above 57,000, a key breakout level.
  
  
• Support Area: 56,900–57,000 acts as a critical buy-on-dips pocket.
  
  
• Momentum Indicators: RSI (14) remains above 70, highlighting strong bullish momentum.
  
  
• Resistance Levels: The next key resistance lies near 57,600–57,650, the previous all-time high zone.
  
  

Derivatives Setup

• OI Build-up: Heavy open interest near the 57,000 strike shows intense positioning from both bulls and bears.
  
  
• PCR Improvement: The Put-Call Ratio rose to 1.15, reflecting renewed optimism.
  
  
• Sentiment: Consistent put writing and call migration to higher strikes suggest scope for an upside breakout.
  
  

Market Outlook

The broader setup for Bank Nifty remains constructive. Sustaining above 57,000 keeps the path open for an eventual breakout beyond 57,600, which could propel the index toward 58,200 in the near term. Any short-term dips are expected to attract buying interest from positional traders.

Conclusion: Bulls Strengthen Grip Ahead of Key Breakout Zones

Both Nifty and Bank Nifty continue to display remarkable resilience, supported by strong technical indicators and healthy derivatives data. As long as the indices sustain above their key support levels, the bullish trend is expected to continue. Traders may maintain a buy-on-dips approach, with potential upside targets of 25,800 for Nifty and 58,200 for Bank Nifty.