Nifty Trades Flat After Recent Rally; Bullish Trend Remains Intact

Indian equity benchmarks paused for breath after a strong recent rally, with the Nifty 50 ending marginally lower amid consolidation. Despite the subdued close, the broader technical structure continues to favour the bulls, suggesting the ongoing uptrend remains healthy.

Nifty: Consolidation Signals Pause, Not Reversal

The Nifty settled at 26,140.75, slipping 0.14% in the session. Price action on the daily chart formed a doji candle, reflecting short-term indecision following the recent advance rather than any meaningful deterioration in trend.

Importantly, the index continues to hold above its rising trendline, while the 20-day moving average is acting as immediate dynamic support. This reinforces the view that the market is consolidating gains rather than entering a corrective phase.

Momentum indicators remain supportive:

• RSI is stable in the 50–52 range, indicating healthy consolidation after the rally
• MACD stays in positive territory, with momentum tilted modestly upward

From a levels perspective, 26,050–26,000 emerges as a crucial support zone, aligning with the rising trendline and short-term averages. As long as this band is protected, the short-term structure remains stable. On the upside, 26,240–26,300 continues to act as an immediate resistance area.

Overall, a sustained hold above the 25,980–26,000 region keeps the broader bullish trend firmly intact.

Nifty Bank: Consolidation Near Highs Keeps Structure Strong

The Nifty Bank index also witnessed consolidation after a sharp rally, closing at 59,990.85, down 0.21% for the session.

On the daily chart, the formation of a hammer candle suggests buying interest emerging at lower levels. The broader trend remains firmly positive, with the index trading above all key moving averages, all of which continue to slope higher—highlighting underlying strength.

Momentum indicators remain encouraging:

• RSI is holding near the 62–63 zone, reflecting sustained bullish momentum
• MACD remains positive, with a rising histogram pointing to underlying strength

On the intraday charts, Nifty Bank has retraced toward the 59,800–59,750 zone, which coincides with the 38.2% Fibonacci retracement of the recent rally. This area is acting as immediate support. Below this, the 59,600 level—aligned with the 50% retracement and a prior resistance—serves as the next key support.

As long as the index sustains above 59,700–59,800, the near-term tone remains steady. A decisive move above 60,150–60,200 would be required to reignite momentum toward recent highs.

Market Outlook

Both Nifty and Nifty Bank are showing signs of healthy consolidation after a strong upmove. The absence of aggressive selling, coupled with supportive momentum indicators and rising moving averages, suggests that the current pause is constructive in nature.

• Nifty holding above 26,000 keeps the bullish bias intact
• Nifty Bank sustaining above 59,700 preserves upside potential

Unless key support levels are breached decisively, buy-on-dips strategies are likely to remain relevant, with traders watching for a breakout above resistance zones to confirm the next leg of the rally.