Nifty Closes Strong at 25,112; Eyes 25,225 Resistance After Weekly Bounce

Nifty wrapped up Friday's session at 25,112.40, gaining a solid 1.29% and putting together its best weekly performance in recent times with a 1.59% advance. What caught our attention was how the index managed to shake off early weakness and stage a strong comeback from lower levels.

Technical Picture Brightens for Nifty 50

The daily chart tells an interesting story. Nifty has finally broken above that pesky declining trendline that's been capping gains for a while now. More importantly, it's back above both the 9-day and 20-day moving averages - something bulls have been waiting to see.

The RSI, which was stuck around 50 for days, has perked up to 58. It's nothing dramatic, but it shows momentum is shifting. On the hourly timeframe, we're seeing a lovely pattern of higher highs, which is precisely what you want when building a case for further upside.

Here's where things get interesting for Nifty traders:

Support levels to watch:

• 25,000 - This round number should act as a decent floor
• 24,950 - If 25K gives way, this becomes important

Resistance ahead:

• 25,225 - The immediate hurdle that needs clearing
• 25,280 - Next target if the momentum continues

The VIX at 13.67 is telling us that fear isn't driving markets right now. As long as it stays below 15, the environment remains supportive of risk-taking.

Nifty Bank Stages Its Recovery

Nifty Bank wasn't going to be left behind, closing at 56,252.85 with a 1.22% gain. The banking index bounced nicely from its rising trendline support and, like the main index, broke above a short-term falling trendline.

What's encouraging is how the RSI has turned up from neutral territory to hit 57. The MACD is also on the verge of flipping positive - these aren't dramatic signals, but they're pointing in the right direction.

Bank Nifty: Key Levels to Watch

• Support: 55,800 (also where the 20-day EMA sits)
• Resistance: 56,700 and 57,050 (all-time high)

If the index manages to break above 56,700, there's room for a quick move towards 57,050. On the downside, 55,800 is the key level to defend.

What This Means Going Forward

Both indices are showing signs of life after some sideways action. The Nifty breaking its downtrend line is significant - it suggests the recent consolidation might be over. For Nifty Bank, the bounce from trendline support looks genuine.

The technical setup isn't screaming "buy everything," but it's more constructive than it was a week ago. If Nifty can push through 25,225, we could see some momentum building toward 25,280. Similarly, Nifty Bank clearing 56,700 would open up a run toward those all-time highs.

The low VIX environment is a bonus - it means institutional money isn't running for the exits, which often creates room for trending moves to develop.

Final Thoughts

Both Nifty and Nifty Bank ended the week with strength, reclaiming critical levels and forming bullish chart patterns. With volatility low and momentum indicators turning positive, the technical setup appears supportive — as long as key support zones remain intact.

The next challenge for the market? Clearing 25,225 on Nifty and 56,700 on Bank Nifty.