Nifty Regains Strength as Volatility Eases; Bank Nifty Extends Recovery

Nifty and Bank Nifty are showing signs of strength after a volatile phase. Both indices managed to hold key technical levels, indicating that the short-term outlook remains constructive for bulls.

​Nifty: Holding Strong Above Key Supports

Nifty closed the week at 24,894.25, gaining 0.23% on Friday and advancing 0.97% on a weekly basis. Finishing just above its 50-day simple moving average (SMA) at 24,840.

The recent bounce came after a retest of the 24,587.70 zone, which has once again proven to be a strong support base.

• Fibonacci retracement levels: Nifty is holding above the 23.6% retracement at 24,790, with the next targets being the 38.2% retracement and the 50% retracement at 25,020. A further move could extend towards the 61.8% retracement near 25,120.
• Support levels: 24,790 followed by 24,750, remain crucial downside supports.
• Indicators: The RSI has rebounded to 49 from oversold territory, while the MACD still leans negative but shows signs of improvement. On the weekly timeframe, Nifty formed a bullish candle with a weekly RSI stable at 53, keeping the broader bias positive.

Takeaway: The short-term trend looks cautiously positive, with 25,000 as the key level to watch. Sustaining above it could open up more upside momentum.

Bank Nifty: Momentum Shifts in Favour of Bulls

The Bank Nifty index ended the session at 55,589.25, up 0.44%, extending its recent recovery.

• Resistance levels: 55,800–55,950 remain the immediate hurdle. A breakout above this range could trigger a move toward 56,300.
• Support levels: The near-term floor is placed around 55,200–55,100, with 55,000 acting as a crucial base.
• Indicators: The daily RSI has climbed to 58, showing strength, while the MACD has confirmed a bullish crossover with green histogram bars—an encouraging sign for further upside. On the weekly chart, Bank Nifty gained 2.21%, with weekly RSI steady at 55, reinforcing the bullish momentum.

Takeaway: As long as the index holds above 55,000, the short-term outlook for Bank Nifty remains positive, with potential to scale higher.

Outlook Ahead

While global market cues and upcoming macroeconomic triggers could drive short-term volatility, the technical setup indicates a cautiously bullish trend.

• Nifty investors should closely monitor the 25,000 mark for a sustained breakout.
• Bank Nifty traders should watch 55,800–55,950 resistance, which could unlock further upside toward 56,300.

Overall, the market’s near-term bias stays positive as long as these indices continue to defend their immediate supports.