Nifty Holds Trend Despite Minor Pullback; Bank Nifty Consolidates

The Indian equity market ended the week on a resilient note, even as Nifty and Bank Nifty witnessed mild profit booking in Friday’s session. Despite the day’s softness, both indices logged their third consecutive weekly gain, supported by strong underlying momentum.

Nifty Analysis

The Nifty ended at 25,327.05, down 0.38%, after a hanging man candlestick in the previous session hinted at exhaustion near recent highs. The index paused just below the 25,450 resistance zone, which coincides with the upper Bollinger Band and has acted as a supply point.

• The 23.6% Fibonacci retracement support at 25,190 is a key short-term reference level.
• On technical indicators, the RSI eased to 63 from overbought readings, while the MACD maintained its positive crossover, supported by a rising histogram.
• All major moving averages remain intact, reflecting a still-positive structure.

As long as Nifty sustains above 25,150, the broader trend remains bullish. A controlled pullback is likely to be temporary, paving the way for a potential retest of the 25,450–25,500 zones in the coming sessions.

Bank Nifty Analysis

The Bank Nifty ended at 55,458.85, slipping 0.48% and snapping its recent winning streak. Despite the day’s decline, the index gained 1.19% on a weekly basis, marking its third consecutive positive close.

• The index slipped near the falling trendline resistance and the 100-SMA at 55,700, signaling hesitation at higher zones.
• Short-term strength remains intact above the 9-EMA and 20-EMA, with Fibonacci support placed at 55,250, followed by 55,000.
• The RSI cooled to 57, while the MACD remains in positive territory, confirming bullish undertones.

Until Bank Nifty decisively breaches 55,800, the index is expected to consolidate within a range with higher support levels firming up the structure.

India VIX Outlook

The India VIX settled at 9.97, its lowest in months, hinting at a stable volatility environment. Low volatility readings generally reflect market confidence, though traders should stay prepared for sudden spikes, which could trigger short-term swings.

Outlook for the Week Ahead

With Nifty and Bank Nifty holding above crucial supports, the primary trend remains bullish. Short-term profit booking is healthy and should help the market sustain momentum for the next leg higher. Unless there is a close below key support zones (25,150 for Nifty and 55,000 for Bank Nifty), the broader outlook suggests continued resilience.

Investors should track movement near resistance zones of 25,450–25,500 for Nifty and 55,700 for Bank Nifty, alongside fluctuations in India VIX, to gauge the strength of the ongoing trend.