Nifty Stalls After Recent Rally but Maintains Buy-on-Dip Bias

Nifty Stalls After Recent Rally but Maintains Buy-on-Dip Bias

Nifty ended its winning streak and closed at 25,048.75, down 0.18%. The index remained largely sideways throughout the day and formed a bearish candle, signaling that momentum has paused after the steady rally seen in recent sessions.

From a technical perspective, Nifty remains in a positive setup, trading above all key moving averages. The 9-EMA has crossed the 50-SMA, while the 20-EMA is edging closer to a crossover with the 50-SMA, reflecting underlying strength. The index is now testing the 61.8% Fibonacci retracement at 25,150, which stands as a crucial resistance. On the downside, the 50% retracement at 25,000 acted as a strong support cushion.

The RSI has improved to 59, moving toward the bullish zone, while the ADX remains muted, indicating consolidation despite building momentum. Unless Nifty delivers a decisive close above 25,160–25,180, upside traction may remain capped. A breakout could open the path toward the 25,320–25,350 swing high, whereas a close below 25,000 would likely trigger profit booking.

The broader outlook continues to favor a buy-on-dips strategy as long as Nifty holds above the 50-SMA, though some near-term consolidation cannot be ruled out.

Nifty Bank: Holding Gains with Key Levels in Focus

Nifty Bank closed at 54,887.85, up 0.14%, after a session marked by mild indecision. The index formed a doji candle on the daily chart, yet sustaining above prior resistance suggests that the short-term trend remains constructive.

The index is holding above both the 9-EMA and 20-EMA, reflecting sustained strength. The RSI has edged up to 51, reclaiming the neutral zone, while the MACD has confirmed a bullish crossover with rising histogram bars, further supporting the positive structure.

On the upside, resistance lies at the Supertrend level of 55,300, followed by the upper Bollinger Band near 55,700. On the downside, 54,600 serves as immediate support, while 54,400 remains the key level to protect the uptrend.

As long as Nifty Bank trades above its short-term averages, the index remains in recovery mode, with 55,300–55,400 acting as the next critical test zone.