Nifty Maintains Steady Uptrend; Bank Nifty Posts Strongest Close Amid Breakout Hints

Indian benchmark indices continued their gradual upward trajectory on Tuesday, with both Nifty and Bank Nifty showcasing resilience amid low volatility and tight-range movement. While the broader markets remained calm, subtle technical signals suggest a brewing breakout on the horizon.

Nifty: Sustained Strength Near Key Resistance

The Nifty closed at 25,522.50, up 61 points (0.24%), marking another day of steady gains as the index consolidates above the crucial 25,500 level.

• The daily candle displayed near-identical open and low, signaling strong buying interest near intraday dips.
• The index continues to hover around the middle Bollinger Band, while the 9-day EMA at 25,400 acts as a dynamic support.
• Price action indicates a coiling formation just below the 25,600 resistance level, suggesting an imminent directional move.

 Momentum Check:

• RSI has climbed to 62 with an upward bias, reflecting sustained bullish momentum.
• MACD maintains a positive crossover and continues to trend above the signal line.

 Key Levels to Watch:

• Support: 25,440–25,380 zone – ideal for intraday re-entries
• Resistance: 25,600 – a breakout here could trigger sharp momentum
• As long as 25,300 holds, the neutral-to-bullish outlook remains intact.

Bank Nifty: Range Breakout Brewing as Index Regains Momentum

Bank Nifty ended at 57,256.30, gaining 0.54%, and registering its strongest close in recent sessions. The index bounced off its early lows and reaffirmed buying interest near key support levels.

• It held firmly above the 20-day SMA at 56,600, signaling short-term bullish bias.
• Price action is currently near the upper band of the Donchian Channel (57,628 – 55,149), suggesting a poised setup for a possible range breakout.

 Momentum Check:

• RSI has improved to 61, moving upward with price action – a healthy sign of strengthening momentum.
• The daily candles are narrowing, often a precursor to a volatility expansion and potential directional move.

 Key Levels to Watch:

• Support: 57,000–56,900 zone – potential re-entry zone for bulls
• Resistance: 57,300 and 57,500 – key breakout targets
• Unless the index slips below 56,800, the outlook remains tilted to the upside.

Conclusion: 

Both the Nifty and Bank Nifty are exhibiting a mature phase of consolidation, with gradually improving momentum. The setup indicates that a breakout is nearing, possibly triggered by broader global cues, earnings, or macroeconomic data.

Traders may consider adopting a buy-on-dips strategy as long as the key supports at 25,300 (Nifty) and 56,800 (Bank Nifty) hold. A confirmed breakout above resistance zones could unleash a fresh leg of bullish momentum in the sessions ahead.