Nifty Holds Gap Support, Inches Closer to 26,000 as Volatility Eases | Stock Market Today

Market Recap

The Nifty index extended its recovery, closing the session at 25,935.15, up 0.26%. The index opened at 25,922.65, moved to an intraday high of 25,989.45, and closed firmly above its opening level, reflecting steady buying interest through the session.

On the daily chart, Nifty formed a small bullish candle, indicating continuation of the ongoing rally rather than exhaustion. The index continues to hold above its gap support, reinforcing near-term stability as it gradually inches closer to the psychological 26,000 mark.

Nifty Technical Outlook

From a technical perspective, Nifty remains well supported above the 23.6% Fibonacci retracement level at 25,920 and continues to trade above all key moving averages, reflecting stable underlying momentum.

On the hourly chart, the index has formed a higher high and higher low, confirming that the short-term trend remains upward despite minor intraday swings.

Momentum indicators remain constructive:

• RSI on the daily chart has improved to around 57, indicating strengthening momentum
• DMI setup remains supportive, with the positive directional line holding above the negative line
• ADX near 22 suggests a steady trend phase rather than an overstretched move

Support levels:

• Immediate support: 25,800
• Next support: 25,700

Resistance levels:

• Immediate resistance: 26,050
• Upper Bollinger Band near 26,100 acts as a stronger hurdle

Volatility Update

Market volatility continued to ease, with India VIX cooling further to 11.66, indicating reduced fear and improving risk appetite. The decline in volatility supports the case for gradual upside continuation rather than sharp corrective moves.

A buy-on-dips approach remains preferable as long as Nifty holds above its key short-term support zones.

Nifty Bank Pauses After Rally, Trend Structure Remains Bullish

Nifty Bank ended marginally lower by 0.07% at 60,626.40, pausing after consecutive sessions of gains. The index traded in a narrow range and formed a small-bodied candle, suggesting consolidation rather than trend reversal.

The index continues to hold above all key moving averages, confirming that the broader uptrend remains intact.

Nifty Bank Technical Setup

Bank Nifty is trading comfortably above the Ichimoku cloud, reinforcing trend stability. The index also remains above the Tenkan-sen and Kijun-sen, indicating consolidation within an ongoing uptrend.

Momentum indicators remain supportive:

• RSI near 58, reflecting steady strength
• MACD remains in positive territory and continues to improve

From a price perspective:

• The upper Bollinger Band near 60,800 is acting as a short-term resistance
• The key hurdle remains at 61,000

Key support:

• Trend remains bullish as long as the index holds above 59,900

Market Outlook

Both Nifty and Nifty Bank are consolidating with strength, supported by easing volatility, improving momentum indicators, and strong gap support. While Nifty is inching closer to 26,000, Bank Nifty appears to be taking a healthy pause after the recent upmove.

As long as key support levels remain intact, the buy-on-dips strategy is likely to remain favourable, with traders advised to stay selective and disciplined near resistance zones.