Nifty & Bank Nifty Rebound from Key Supports, Signal Short-Term Stability

Both Nifty and Nifty Bank indices staged a measured recovery on Thursday, reclaiming vital support zones after intraday weakness. While broader trends remain under pressure, the price action hints at a near-term bottoming process supported by technical indicators and key support levels.

Nifty Recovers from Intraday Lows, Holds Key Support

Nifty closed the session at 24,596.15, up 0.09%, recovering from an intraday low of 24,344.15. The rebound came precisely above the swing support zone of 24,475, reinforcing the technical importance of this level.

Technical Snapshot – Nifty

• Resistance: Nifty continues to trade below its 50-day SMA (25,030) and 20-day SMA (24,900).
  
  
• Support: Key support rests at 24,450, followed by 24,400.
  
  
• RSI: Currently at 39, indicating weak momentum but showing signs of stabilization.
  
  
• MACD: Remains negative with a slight bearish skew, but the histogram is flattening.
  
  
• Volatility: India VIX stayed subdued at 11.68, indicating a calm options market environment.
  
  

The daily candle’s long lower shadow suggests dip-buying interest. While the short-term trend remains fragile, a decisive close above 24,750–24,800 is needed to confirm bullish follow-through. Until then, these levels will continue to act as strong resistance.

On the hourly chart, Nifty rebounded from the lower Bollinger Band and is now trading above the VWAP, reflecting short-term strength.

Bank Nifty Shows Strength with a Bullish Intraday Reversal

The Nifty Bank index rose by 0.20% to close at 55,521.15, rebounding from a session low of 54,973.55. The bullish lower wick on the candlestick suggests strong buying interest near crucial support.

Technical Snapshot – Bank Nifty

• Support: Immediate support lies at 55,150, followed by 54,440, a zone that has held firm since mid-June.
  
  
• Resistance: Upside hurdles are placed at 55,900–56,100, aligned with hourly swing zones and daily moving averages.
  
  
• RSI: Has moved up to 39, recovering from oversold levels.
  
  
• MACD: Maintains a bearish crossover, though the histogram is flattening – hinting at slowing downside momentum.
  
  

The index is still trading below both its 20-day and 50-day SMAs, indicating a short-term downtrend. However, the hourly recovery above the VWAP suggests improving sentiment and a potential for follow-through if resistance zones are broken.

Key Levels to Watch

• Breakout Zone: A close above 56,100 could trigger a fresh rally toward 56,350.
  
  
• Support to Hold: 55,150 remains a critical base; a breach below could disrupt the recovery trajectory.
  
  

Derivative Data Supports Gradual Bullish Shift

• The 56,000 strike is seeing heavy call writing, highlighting a strong resistance.
  
  
• On the flip side, 55,000 strike retains the highest put open interest, underscoring strong downside support.
  
  
• The Put-Call Ratio (PCR) has improved slightly to 0.79 from 0.72, indicating marginal bullish sentiment.
  
  
• Traders are cautiously rebuilding long positions, reflecting growing confidence that a near-term bottom may be forming.
  
  

Conclusion: Recovery in Progress, But Key Levels Must Break

Both indices have respected critical support zones and are displaying signs of stabilization. However, the upside momentum is still fragile, and confirmation of trend reversal will depend on a breakout above immediate resistance levels.

Until then, a buy-on-dips strategy near established support zones remains the preferred approach, with tight stop-losses in place. With volatility remaining low and sentiment gradually improving, the coming sessions will be crucial in determining the sustainability of this rebound.