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NIFTY

As we approach Diwali 2025, Nifty has been trading in a sideways range after witnessing a strong bounce from its demand zone. This ongoing consolidation phase can be seen as a healthy pause within the broader uptrend and may offer a strategic buying opportunity for investors. The chart structure indicates that the market is stabilizing, creating a favorable environment for long-term investors.

The Cup and Handle formation observed on the weekly timeframe further strengthens the bullish setup. The lower band of this sideways range aligns closely with the short-term 20-day EMA, providing additional technical support in the 24,000–23,800 zone. A rebound from these levels could mark the beginning of a renewed upward move.

For investors with a long-term horizon, the current consolidation phase presents a golden opportunity to accumulate quality stocks at attractive valuations. Gradual or partial accumulation during this phase could help build a strong portfolio foundation ahead of the next market uptrend.

If Nifty successfully holds above its support zone and manages to give a sustainable breakout move, it could resume its upward trend, with broader market participation likely to follow. Stocks selected during this consolidation phase are expected to outperform in the coming months as sentiment improves

Looking ahead, Nifty is expected to target 26,500 and 28,000 by Diwali 2026, offering substantial upside potential. Investors positioning themselves during this consolidation may benefit from a robust market recovery as economic fundamentals remain supportive of growth. Building a resilient portfolio this Diwali could set the stage for significant long-term wealth creation.

BANKNIFTY

Bank Nifty has recently witnessed a strong recovery and is currently trading at 56,520. The index successfully broke out of the 53,500–54,000 resistance zone and later retested this level, turning it into a solid support base before rebounding. This confirms a successful breakout retest, and a move above the recent swing high would further validate the bullish momentum. Moreover, Bank Nifty is trading above the 20-week, 50-week, and 200-week EMAs, indicating strong bullish undertones

The Weekly RSI stands at 62.18, placing it in the neutral zone and suggesting some room for consolidation before the next major upward move. Despite this, the overall price structure remains positive, as Bank Nifty continues to form higher highs and higher lows on the weekly timeframe — a classic sign of a sustained uptrend.

The index is expected to find strong support between 54,000–53,500, offering a favorable buying opportunity for long-term investors. Any correction toward this zone should be viewed as a healthy pullback, allowing the index to build momentum for the next leg of the rally. As long as Bank Nifty holds above this key support, the bullish outlook remains intact.

Looking ahead, Bank Nifty has the potential to reach 60,000–62,500 levels by Diwali 2026, supported by strong fundamentals within the banking sector. A “buy on dips” strategy is recommended, as the index remains well-positioned for continued medium- to long-term growth.

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