Nifty Holds Strong, Bank Nifty Knocks on Breakout Zone

The Indian equity market continues to exude strength, with Nifty and Bank Nifty both holding firm amid consolidation and bullish undertones. Following a brief pause in the previous session, both indices resumed their upward trend, supported by robust technical structures and healthy market breadth.

Nifty Technical Analysis: Momentum Intact, Breakout Valid

The Nifty index ended the session at 25,541.80, up 0.10%, showcasing resilience and a clear intent to hold ground above the crucial breakout zone near 25,320. This consolidation follows a sharp breakout from an ascending triangle pattern, which remains valid as long as price action continues to respect higher levels.

• Key Technical Levels:
  • Support Zone: 25,350–25,300
• Immediate Resistance: 25,610
• Upside Targets: 25,740 and 25,850 (guided by the 161.8% Fibonacci extension)

The 9-day EMA and 20-day EMA continue to act as dynamic support levels, reinforcing the strength of the current uptrend. The hourly chart confirms a higher-high pattern, while the daily candle printed a narrow body, indicating consolidation rather than weakness.

Momentum Indicators:

• RSI: Holding at 64—well within bullish territory.
• MACD: Bullish crossover maintained with a rising histogram.
• VWAP Action: Dips are being absorbed, signaling underlying accumulation.

As long as Nifty holds above 25,350, the structure remains constructively bullish. Sustaining above 25,610 could unlock the next phase of the rally.

Bank Nifty Technical Analysis: Approaching Breakout from Rising Wedge

The Bank Nifty index closed at 57,459.45, up 0.26%, extending gains and heading toward its upper resistance near 57,600—an area that coincides with the upper Bollinger Band and trendline resistance of a rising wedge pattern.

• Key Technical Levels:
  • Immediate Resistance: 57,600–57,620
  • Upside Potential: 58,000–58,200 on breakout
  • Support Zone: 57,000–56,800
  • Key Support for Trend Validity: 57,150

The hourly chart for Bank Nifty continues to display a bullish structure, while the daily RSI has moved up to 66, still within a healthy range just below overbought territory.

Momentum Indicators:

• MACD: Continues in a bullish crossover with a rising histogram.
• Short-Term Averages: 10-day and 20-day EMAs are sloping upward, supporting the uptrend.

A decisive breakout above 57,620 could trigger a fresh rally toward 58,000 and possibly 58,200. On the other hand, dips toward 57,000 are likely to encounter strong buying support.

Market Sentiment & Strategy

Both the Nifty and Bank Nifty are demonstrating strong internal strength, and the current pauses in momentum should be viewed as constructive consolidations rather than signs of fatigue.

Strategy:

• Buy on dips remains the preferred approach.
• Monitor for a breakout above 25,610 (Nifty) and 57,620 (Bank Nifty) for bullish continuation.
• Accumulate near supports (25,300 for Nifty, 57,000–56,800 for Bank Nifty) with tight stop-losses below these zones.

Conclusion

The Nifty index is consolidating above its breakout zone with intact bullish momentum, while Bank Nifty is setting up near a critical resistance zone that could spark a fresh rally. As both indices remain above their key moving averages and exhibit healthy technical indicators, the overall market structure favors continued optimism.

With the July series underway, volatility remains low, and accumulation patterns suggest further upside potential. Investors and traders should stay nimble but biased toward the bulls as long as key supports are held.