Nifty Pulls Back from the Peak; Momentum Turns Subdued

After a strong run-up in recent sessions, the Nifty index witnessed a mild pullback, ending the day at 25,046.15, down 0.25%. On the daily chart, the index formed a bearish candle with a long upper shadow, indicating intraday rejection from higher levels. Despite this decline, the index continues to hover above key support zones that previously acted as resistance, keeping the broader structure intact.

Nifty remains above all its major moving averages, though the narrowing gap between the 9-EMA and 20-EMA suggests that short-term upside momentum may be losing strength. The RSI has flattened around 54, hovering near the midline, while the MACD stays in the neutral zone, reflecting subdued directional bias.

The Supertrend resistance near 25,180 continues to cap the upside, followed by the Bollinger upper band around 25,480. On the downside, support is placed near 24,900, followed by 24,850, which also aligns with the 50% Fibonacci retracement zone.

Meanwhile, the India VIX closed at 10.31, and any sharp rise toward the 11 level could lead to heightened volatility in the near term.

In the coming sessions, Nifty may remain range-bound and choppy, oscillating within the 24,850–25,220 zone until a decisive breakout on either side provides clear direction.

Nifty Bank: Momentum Pauses After a Six-Day Rally

The Nifty Bank index ended at 56,018.25, down 0.39%, forming a spinning top candle on the daily chart — a pattern that signals indecision after a strong six-session upmove. The index faced selling pressure from higher levels, suggesting a pause in momentum and potential short-term consolidation.

Despite the minor dip, Nifty Bank continues to hold above all major moving averages, reaffirming its medium-term bullish structure. However, unless the index regains traction above 56,300, it could witness sideways movement or mild profit-booking in the short run.

The RSI currently stands at 61, indicating moderate strength, while the MACD continues to maintain a positive crossover, although the histogram bars show slightly reduced momentum.

On the downside, support is placed at 55,650, followed by 55,500, whereas resistance is seen at 56,300–56,400.

While the broader outlook remains steady, the combination of an extended rally and resistance near the upper band hints at a possible cooling-off phase in the upcoming sessions.

Key Technical Takeaways

• Nifty faces overhead resistance at 25,180–25,220, with support around 24,850–24,900.
  
  
• Nifty Bank shows short-term hesitation after a strong rally; resistance seen near 56,300–56,400.
  
  
• Momentum indicators like RSI and MACD suggest a neutral to mildly positive bias.
  
  
• Volatility may pick up if India VIX rises above 11, leading to larger intraday swings.
  
  
• Broader structure remains positive, but markets could consolidate before resuming trend direction.
  

 Overall Market View

While the medium-term trend for both Nifty and Bank Nifty remains constructive, near-term signals point to a phase of consolidation and reduced momentum. Traders should adopt a stock-specific approach, maintain tight stop-losses, and wait for a clear breakout before taking fresh directional positions.