Nifty Takes a Breather Near Key Resistance; Broader Tone Remains Firm

After a strong multi-session rally, the Nifty index finally paused on Friday, reflecting a mild consolidation rather than any structural weakness. The index ended the session at 25,517.05, down 0.47%, pulling back slightly from the upper resistance zone around 25,660–25,685, which coincides with the 161.8% Fibonacci projection. Despite the dip, the broader tone remains bullish, supported by strong technical indicators and continued momentum in the broader market.

Nifty Technical Overview: Trend Intact Despite Pause

Nifty continues to trade above its 9-day and 20-day exponential moving averages (EMAs), both of which are sloping upward, confirming the prevailing uptrend. The support zone at 25,350–25,300, which earlier served as a breakout region, is now expected to act as a buying zone on any dip. As long as the index holds above this support, traders can continue to adopt a buy-on-dips approach.

The Relative Strength Index (RSI) eased slightly to 63, remaining in healthy territory without showing signs of exhaustion. This suggests the momentum is cooling but still well within bullish territory. On the upside, if Nifty manages a sustained close above 25,700, it could unlock fresh upside potential toward 25,900–25,970 in the near term.

Broader Market: Nifty 500 Stays Steady

The Nifty 500 index closed almost flat at 23,617.20, indicating continued resilience across broader market segments despite the mild correction in frontline indices. This is an encouraging sign for overall market breadth and underlines sustained investor interest in mid- and small-cap stocks.

Nifty Bank Update: Uptrend Holds Despite Resistance

The Nifty Bank index ended the session at 57,312.75, down 131.15 points (0.23%), snapping a four-day winning streak. However, this was more of a technical pullback than a change in trend. The index encountered resistance near its upper trendline and Bollinger Band, around the 57,600 level, triggering some profit booking near the top.

Despite this, Nifty Bank maintains its positive structure, comfortably holding above all short- and medium-term moving averages. These averages are sloping upwards, providing dynamic support to the trend. Notably, the slope of the Bollinger Band has turned upward, signaling increased volatility and room for price expansion.

The daily RSI stands at 66, indicating strong momentum that’s not yet overbought. The MACD has entered into positive territory, with a rising histogram indicating continued strength under the surface.

Key Levels to Watch for Nifty Bank:

• Immediate Resistance: 57,620 – A breakout above this may push the index toward 58,200.
• Immediate Support: 57,000–56,800 – an ideal accumulation zone.
• Critical Support: 56,300 – trend reversal only likely below this level.
  
  

Outlook Ahead: July Series Begins on Solid Footing

As we enter the July series, both Nifty and Nifty Bank show constructive price structures supported by healthy momentum indicators and improving market breadth. Volatility remains under control, and strong rollovers from June point to continued confidence among market participants.

The strategic approach remains unchanged: Buy on dips near support zones and ride the trend as long as critical support levels hold.

 Summary:

• Nifty is consolidating near resistance but maintains a strong trend.
• Support zones: 25,350–25,300 for Nifty, 57,000–56,800 for Nifty Bank.
• Breakout levels: 25,700 (Nifty), 57,620 (Nifty Bank).
• Market breadth and technical strength suggest bullish continuity into July.