Nifty Consolidates Near Recent Highs as Bulls Pause for Breath

After a week of steady gains, the Nifty 50 index took a breather, ending marginally lower in a range-bound session. The index settled at 25,227.35, down 0.23%, reflecting mild profit booking after its recent rally. Despite the subdued tone, the overall trend remains constructive, with Nifty trading comfortably above all key moving averages on both the daily and hourly charts.

The ongoing consolidation near recent highs signals that bulls are taking a short pause, while maintaining control above crucial support zones.

Nifty Technical Overview

Nifty’s recent action suggests healthy consolidation after a robust upward move. The index continues to maintain a sequence of higher highs and higher lows, highlighting underlying strength in the trend.

On the technical front:

• RSI (58) has flattened slightly after a strong rise, reflecting stable but moderated momentum.
  
  
• MACD remains above the signal line, indicating the positive bias is still intact.
  
  
• The 25,450 zone acts as a critical resistance, while immediate support lies around 25,150–25,100, aligning with the hourly supertrend base.
  
  

As long as Nifty sustains above this support band, the structure stays bullish. A sustained close above 25,320 could trigger the next leg of the rally, opening the path for gradual gains in the coming sessions.

Key Levels:

• Immediate Support: 25,150–25,100
  
  
• Resistance Zone: 25,320–25,450
  
  

Meanwhile, the India VIX rose 9% to 11.01, signaling a potential rise in near-term volatility as traders reassess risk at higher levels.

Bank Nifty: Holding Steady Amid Volatility

The Nifty Bank index ended at 56,625.00, up 0.03%, reflecting resilience despite intraday volatility. The index continues to hold above the descending trendline breakout and all major moving averages across timeframes, reinforcing the underlying bullish setup.

Momentum indicators remain supportive:

• RSI at 67 stays in positive territory, indicating sustained strength.
  
  
• MACD holds a bullish crossover, showing continued upward momentum.
  
  
• The hourly supertrend indicator continues to offer trailing support on dips.
  
  

Key Levels:

• Immediate Support: 56,400–56,150
  
  
• Resistance Zone: 56,780–56,900
  
  

As long as the index trades above 56,150, the short-term bias remains positive, with the potential to test 56,800–57,000 in the upcoming sessions.

Market Outlook

The broader market remains in a healthy consolidation phase, with both Nifty and Bank Nifty sustaining comfortably above crucial supports. This pause is typical after a steady upmove, allowing momentum indicators to reset before a possible continuation higher.

A decisive close above 25,320 for Nifty and 57,000 for Bank Nifty would confirm the next leg of the rally. Meanwhile, traders should stay cautious as the rise in India VIX suggests that short-term volatility could make markets choppy in the next few sessions.

Key Takeaways

• Nifty ends at 25,227.35, down 0.23% after a range-bound trade.
  
  
• Trend remains positive above 25,100, with resistance at 25,320–25,450.
  
  
• India VIX rose 9% to 11.01, hinting at near-term volatility.
  
  
• Bank Nifty holds steady at 56,625 with bullish momentum intact.
  
  
• Market in consolidation mode, favoring a buy-on-dips strategy.