Nifty Steadies After Gap-Up; Recovery Attempts Gain Traction | Stock market today

Indian equity markets continued their recovery momentum, with the Nifty extending gains after a clear gap-up opening, signaling improving risk appetite and growing acceptance of recent breakout levels. The index closed at 25,867.30, up 0.68%, holding most of the early gains and forming a bullish candle on the daily chart.

Sustaining above the gap zone suggests strength in the ongoing rebound and keeps the index positioned for a potential retest of higher resistance levels.

Nifty Technical Outlook: Key Levels to Watch

From a trend perspective, Nifty has reclaimed the 50-day simple moving average (SMA), which is near 25,800, while the 20-day SMA is lower at 25,450. The recovery has resulted in a bullish crossover among short-term moving averages, strengthening the near-term outlook.

On the daily chart, the rebound from recent lows has retraced toward the 0.382 Fibonacci level near 25,663, with the index now consolidating above this zone. This price behavior indicates consolidation after a sharp recovery rather than exhaustion.

Momentum indicators continue to improve:

• RSI has moved up to around 56, back above the mid-zone
  
  
• DMI setup shows the positive directional line gaining strength, reflecting an improving trend participation
  
  

Support levels:

• Immediate support: 25,750
  
  
• Next support: 25,650
  
  

Resistance levels:

• Key hurdle: 26,000–26,100
  
  

As long as Nifty holds above the gap support and short-term averages, the recovery bias remains intact. A failure to sustain these levels, however, could prompt short-term profit-taking.

Nifty Bank Holds Firm Near Highs; Uptrend Remains Intact

Nifty Bank outperformed, ending the session at 60,669.35, up 0.91%. The index opened strong and maintained its gains throughout the session, reflecting sustained buying interest in banking stocks.

The index continues to trade above all key moving averages, supported by a positive crossover among short-term averages, confirming that the broader trend remains bullish.

Nifty Bank Technical Setup

On the daily chart, the rebound from recent lows has retraced toward:

• 0.236 Fibonacci level near 60,830
  
  
• 0.382 Fibonacci level near 60,250, where the index is currently stabilising
  
  

Holding above these retracement zones suggests that the recent pullback is being absorbed within the broader uptrend rather than signaling a reversal.

Momentum indicators remain supportive:

• RSI near 60, comfortably above the mid-zone
  
  
• DMI shows the positive directional line firmly above the negative line
  
  
• ADX near 20, indicating steady but controlled trend strength
  
  

The hourly chart continues to reflect a bullish structure.

Support levels:

• Immediate support: 60,300–60,200
  
  
• Stronger base: 59,600, aligned with key Fibonacci and moving-average levels
  
  

Resistance levels:

• Immediate resistance: 60,900–61,100
  
  

Market Outlook

Both Nifty and Nifty Bank are showing an improving price structure, with recoveries gaining traction after the recent correction. Nifty Bank remains positioned close to record highs, while Nifty is consolidating above key breakout levels.

A buy-on-dips approach may remain preferable in the near term, provided 59,640 holds for Bank Nifty and Nifty sustains above its gap support. The next directional move is likely to be guided by how indices behave near their respective resistance zones.