Bank Nifty continued its winning streak for eleven-consecutive session and settled at 55,493 up 0.63% - ICICI Direct
Nifty :25330
Technical Outlook
Day that was…
Equity benchmark rose for the second straight session amid positive comments from India-US trade talks and settled at 25330, up 0.36%. Market breadth was in favor of advances, with an A/D ratio of 1.30:1 where broader markets outperformed the benchmark. Small cap outperformed and closed on a positive note up 0.68%. Sectorally, Metal, Consumer Durable and FMCG underperformed. Whereas, PSU Bank, IT and Oil & Gas outshone
Technical Outlook:
* Nifty started the day with a gap up, and traded within 70 points range throughout the session. As a result, the daily price action formed a bull candle indicating, continuation of the upward momentum.
* Nifty is likely to open Gap-up on back of Fed rate cut and positive global cues.Key point to highlight is that, Index witnessed highest close since 11th July 2025 and filled the gap, making higher-highlow structure after witnessing a breakout from contracting triangle (25100-24400) indicating continuation of the upmove and will gradually resolve higher towards 25500 in coming weeks. Further, the US Dollar index has been sustaining below the immediate support of 97, that bodes well for emerging markets. Looking at the improvement in the broader structure, we revise our support to 24900 being 50% retracement of the upmove from (24404-25346).
* On the broader market front, Historically, Midcap nifty in a bull market scenario had witnessed an average decline of 27%.In current scneraio, after the fall of 23% in April 2025 Midcap nifty witnessed a sharp bounce and made a higher base in the vicinity of 52-week EMA making higher-high on monthly time frame supported by improvement in % of stocks above 50 days SMA from a month earlier at 27 to currently at 70 indicating, conclusion of corrective bias and resumption of upmove. Any breather from here should be considered as buying opportunity.
* On the market breadth front, the % of stocks above 50 days SMA have once again maintained the rhythm of bouncing from bullish support zone of 25%. The current jump to 63% clearly signifies broadening of market participation. On the broader market front, both Nifty Midcap and small cap have bounced from the vicinity of 52-week EMA amid oversold conditions, indicating an incremental buying opportunity from medium term perspective.
* Key monitorable:
* a) Development of Bilateral trade deal negotiations.
* b) Breakdown from one year falling trend line in US 10 Year Bond Yield
Nifty Bank : 55493
Technical Outlook
Day that was:
Bank Nifty continued its winning streak for eleven-consecutive session and settled at 55,493 up 0.63%. Nifty PSU Bank index has relatively outperformed the benchmark, ending the day at 7315 up 2.61%.
Technical Outlook:
* Bank nifty opened the day with a positive gap-up and witnessed follow through buying demand in the vicinity of previous session high. Consequently, the daily price action formed a strong bull candle carrying higher-high-low structure, indicating resumption of upward momentum.
* Key point to highlight is that index continued with its higherhigh-low structure for eleven-consecutive day and maintained the position well above the 20-day EMA. Index has witnessed follow through strength after closing above the 50-day EMA post seven-weeks, signaling revival in uptrend. Going forward, any positive outcome from the US fed policy meeting along with tariff negotiation could act as a trigger, driving the index towards 56800 being 80% retracement of the preceding decline (57628- 53578). On the momentum front, weekly stochastic oscillator has maintained its bullish crossover, with reading of 47, reflecting continuation of current upward momentum. Hence, with the above improvement in index we revise our support to 54500 being 50% retracement of the current up move (53,561-55,540) and any decline from current level should be viewed as a buying opportunity.
* Structurally, Since Dec-22 the intermediate correction within channelized move has been arrested within 10%. While buying near 52 weeks EMA has been fruitful over next 8 months. With current 7% correction Bank Nifty witnessed elevated buying demand in the vicinity of 52 weeks EMA, indicating formation of a strong base and setting the stage for resumption of the uptrend.
* PSU Bank Index has outperformed the benchmark and closed on a positive note. Index has witnessed a decisive breakout from the cup & handle pattern in daily chart, indicating the resumption of an uptrend and opening the door for the further upside towards its measured move target at 7690. However, immediate support is placed near 6970 being 50-day EMA.
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