The Nifty 50 ended the session at 26,178.70, slipping 0.27%, after pulling back from a fresh all-time high of 26,373.20 recorded earlier in the day. The mild decline reflects profit booking at elevated levels rather than any structural weakness. On the daily chart, the index formed a bearish candle, signalling consolidation after a breakout, a healthy characteristic of an ongoing uptrend.
Nifty Technical Outlook: Trend Remains Intact
Despite the intraday retracement, Nifty continues to trade above all its key moving averages, reinforcing the strength of the broader trend.
- 20-day EMA: Near 26,020, acting as immediate dynamic support
- 50-day SMA: Around 25,950, which remains well protected
The index has eased off the upper Bollinger Band after a sharp vertical rally and is gradually moving toward the middle band, indicating normalization of momentum rather than trend exhaustion.
Momentum Indicators Signal Stability
Momentum indicators continue to support the bullish structure:
- RSI: Positioned near 55, holding comfortably above the neutral 50 mark
- MACD: Remains in positive territory, confirming trend strength
These readings suggest that the recent pullback is technical cooling, not a momentum breakdown.
Key Support and Resistance Levels for Nifty
- Immediate Support: 26,080–26,000, aligned with short-term moving averages and prior breakout levels
- Resistance Zone: 26,300–26,350, where supply has emerged
As long as 26,000 holds on a closing basis, the broader trend remains firmly bullish. A decisive close above 26,350 would be required to resume the next leg of the upward extension.
Nifty Bank Outlook: Strength Continues with Minor Consolidation
The Nifty Bank index ended the session at 60,118.40, gaining 0.12%, and continues to trade within an established uptrend. After retracing part of its earlier decline, the index is now holding above the 23.6% Fibonacci retracement level near 60,000, which is emerging as a key short-term support.
On the daily chart, Nifty Bank formed a bullish candle with wicks on both sides, indicating indecision but sustained buying interest at lower levels.
Nifty Bank Technical Structure
- Trading above all major moving averages
- Lower Bollinger Band continues to slope upward, supporting trend continuation
- RSI: Near 66, indicating strong momentum
- MACD: Positive on both daily and hourly timeframes
Key Levels to Watch for Nifty Bank
- Support Zone: 59,800–59,750, aligned with the earlier breakout region
- Resistance Zone: 60,350–60,400
Holding above 59,750 keeps the near-term outlook constructive. A sustained breakout above 60,400 could open the door for fresh upside extensions.
Market View: Healthy Pause, Not Trend Reversal
Both Nifty and Nifty Bank are showing textbook consolidation behavior after strong rallies. The current pause reflects absorption of supply at higher levels, rather than distribution. Momentum indicators, moving averages, and price structure collectively suggest that the broader trend remains bullish.
Unless key support zones are violated on a closing basis, dips are likely to be viewed as buy-on-decline opportunities, with traders watching for fresh breakouts to resume the upward momentum.
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