Nifty’s Candle Speaks: Rejection at the Top, Cushion Intact Below

The Indian equity markets experienced a volatile session as Nifty and Nifty Bank struggled to sustain gains. Thursday's trading revealed intraday swings, rejection at key levels, and continued range-bound movement, leaving short-term trends indecisive.

Nifty Today: Rejection at Higher Levels

The Nifty 50 index settled at 24,734.30, gaining a marginal 0.08%. The index formed a bearish candle with its open and high at 24,980.75, signaling clear rejection at higher levels. The advance-decline ratio also reflected a weaker breadth, highlighting cautious investor sentiment.

Currently, Nifty is oscillating between the 20-SMA at 24,650 and the 50-SMA at 25,000, leaving the short-term technical outlook indecisive. On a broader timeframe, the index continues to trade within a wide range, where 24,500 has repeatedly acted as a safeguard on a closing basis. As long as this base holds, the broader outlook remains neutral to positive, despite short-term swings.

Technical Indicators:

• RSI: 49 (midpoint, balanced momentum)
  
  
• MACD: Negative territory
  
  

Key Levels:

• Support: 24,600–24,530
  
  
• Resistance: 24,900–25,000 (aligned with 50-SMA)
  
  

Unless Nifty decisively reclaims 25,000, the index is likely to remain range-bound, with 24,500 acting as a crucial base that supports the neutral-to-positive stance.

Nifty Bank Today: Sideways Struggle

The Nifty Bank index ended at 54,075.45, finishing almost unchanged after a volatile day. The index formed a candle with long upper and lower shadows, reflecting intraday rejection near the VWAP at 54,165. The recovery attempt remains inconclusive.

Nifty Bank continues to trade below short-term moving averages, keeping the immediate trend tilted toward the weaker side. On the broader timeframe, it is still protecting recent swing lows at 53,560, which act as a key cushion.

Technical Indicators:

• RSI: 37 (muted momentum)
  
  
• Trend: Below short-term averages, immediate weakness
  
  

Key Levels:

• Resistance: 54,550–54,620 (convergence of short-term averages)
  
  
• Support: 53,600–53,480
  
  

Unless Bank Nifty decisively reclaims 54,900, the index is expected to remain in consolidation with limited directional movement.

Market Outlook

Both Nifty and Nifty Bank remain range-bound, with key support and resistance levels guiding intraday swings. Traders should adopt a cautious approach, focusing on range trading strategies until a decisive breakout occurs.