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Below the Nifty and Bank Nifty Weekly Outlook by Hardik Matalia, Derivative Analyst, Choice Broking Ltd

NIFTY

The Nifty index closed at 25,722.10, registering a 0.28% decline from the previous week’s close. On the weekly chart, the index reflects a sideways setup, as it failed to sustain above the 25,800 mark, indicating the possibility of some retracement or consolidation in the near term.

This week, a small bearish-bodied candle with a long upper wick was formed, also creating an inside candle pattern, indicating indecision in the market. The price action reflects a sideways to consolidation phase, as the index failed to hold its gains and slipped below the 25,800 mark, suggesting the possibility of a short-term retracement or consolidation in the near term.

On the weekly timeframe, the Nifty is trading above all its key Exponential Moving Averages (EMAs) — including the short-term (20-week), medium-term (50-week), and long-term (200-week) EMAs. This alignment continues to indicate a strong underlying uptrend, suggesting that the index remains well-supported on dips. However, the Relative Strength Index (RSI) stands at 60.57, reflecting a sideways trend and indicating that momentum has flattened out, hinting at a possible pause or consolidation phase before the next directional move.

In terms of levels, the Nifty has immediate support at 25,600 and 25,500, which could provide buying opportunities on declines. On the upside, resistance is seen at 25,800 and 26,000, with the latter acting as a key hurdle. A sustained breakout above 26,000 could trigger a bullish move, potentially targeting the 26,100–26,300 zone in the coming weeks.

The India VIX surged by 4.85% during the week to close at 12.1525, indicating a slight rise in market volatility. In the derivatives segment, the maximum Call Open Interest (OI) is concentrated at the 25,800 and 25,900–26,000 strike levels, suggesting strong resistance at higher zones. On the downside, the maximum Put Open Interest is seen at the 25,700 and 25,600–25,500 strike levels, highlighting strong support zones. Overall, the setup indicates a sideways-to-range bound trend, with supportive undertone as long as the index holds above key support levels.

Support: 25700 - 25500

Resistance: 25800-26000

Bias: Sideways

BANKNIFTY WEEKLY OUTLOOK 

Bank Nifty ended the week on a weak note, closing at 57,776.35, down 696 points from the week’s high, marking a volatile trading session. The index displayed notable weakness by breaking below the key support level of 58,000, and formed an inside candle, indicating a phase of consolidation and indecision among market participants.

If selling pressure re-emerges and the index decisively breaks below 57,600, it could trigger a further correction towards 57,480–57,325 and potentially lower levels. On the upside, immediate resistance is placed at 58,000, followed by 58,300 and 58,700.

Technical indicators present a cautious outlook. The RSI on the weekly chart, currently at 63.41 and trending sideways, signals a pause in momentum while still maintaining bullish undertones. Additionally, the index continues to trade above its 20-day, 50-day, and 200-day EMAs, highlighting a structurally positive setup that supports the continuation of the broader uptrend.

A decisive close above 58,000 would reaffirm bullish momentum and open the door for further gains, whereas failure to sustain above this level could invite short-term weakness. Traders are advised to remain constructive yet disciplined, closely monitoring 57,600 on the downside and 58,000 on the upside for cues on the next directional move.

Support: 57600-56480

Resistance: 58000-58700

OBias :- Sideways

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