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NIFTY

The NIFTY index closed at 25,112.40, registering a 1.59% gain over the previous week's close. The weekly chart reflects a sideways-to-bullish setup, as the index managed to hold above the key psychological level of 25,000, indicating a potentially bullish outlook in the near term.

This week, a strong bullish candle was formed, taking the shape of an Inside Bar pattern, indicating buying interest from lower levels. The price action reflects a sideways to bullish momentum, suggesting that the index is attracting buying on dips and has managed to hold onto its gains. A sustained hold above the 25,000 mark is crucial for further upside movement.

On the weekly timeframe, 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 indicates a strong underlying uptrend and suggests that the index is well-supported on dips, with bullish momentum likely to continue in the near term. The Relative Strength Index (RSI) stands at 60.81, showing a reversal towards the upside, indicating strengthening momentum. The index remains in a healthy structure, and a sustained hold above crucial levels could reignite upward momentum in the coming sessions.

In terms of levels, Nifty has immediate support at 25,000 and 24,800, which could offer strong buying opportunities for traders on dips. On the upside, resistance is seen at 25,200 and 25,300, with the latter acting as a key hurdle. A sustained breakout above 25,300 could trigger a bullish rally, potentially targeting 25,500 and 25,700 in the coming weeks.

The India VIX, a key indicator of market volatility, declined by 4.09% to close at 13.6725 on the daily timeframe, reflecting a drop in market uncertainty and improved investor sentiment. In the derivatives segment, the highest Call Open Interest (OI) is concentrated at the 25,200 and 25,300 strike levels, suggesting strong resistance around these zones. On the downside, the highest Put Open Interest is observed at the 25,000 and 24,800 strikes, indicating strong support and traders’ confidence in defending these levels. This setup suggests a likely range-bound movement in the near term, with a positive bias as long as the index holds above the key support levels.

Support: 25000 - 24800

Resistance: 25200-25300

Bias: Sideways to Bullish

BANKNIFTY

The Bank Nifty index closed at 56,252.85, registering a 1.31% gain from the previous week's close. The weekly chart indicates buying interest from lower levels, with the index managing to hold above the crucial 56,200 mark. This suggests a sideways to bullish tone in the near term, with sustained strength above current levels potentially paving the way for further upside.

This week, the Bank Nifty index formed an Inside Bar candlestick pattern on the weekly chart, accompanied by consistent trading volumes. This indicates a phase of consolidation and reflects growing confidence among market participants. The pattern suggests a sideways to bullish bias or continued consolidation in the near term. A "buy on dips" strategy is advisable as long as the index holds above the 55,500 mark, with potential upside targets placed at 56,500 and 57,000.

On the weekly timeframe, the Bank Nifty index is trading above all its key moving averages, including the short-term 20-day, medium-term 50-day, and long-term 200-day Exponential Moving Averages (EMA), indicating an overall upward trend and buying interest from lower levels. The index has managed to hold at higher levels, with immediate downside support placed in the 56,000–55,500 zone. The Relative Strength Index (RSI) stands at 64.33 and is trending upwards, suggesting strength in momentum. Overall, the structure indicates a sideways to bullish bias or consolidation phase in the near term.

The Bank Nifty index is likely to face significant resistance in the 56,500–57,000 range. If the index continues to move higher, HDFCBANK and KOTAKBANK from the private banking sector are likely to support the uptrend. In the public sector banking space, SBIN and FEDERAL Bank are expected to show strength.

For the ongoing expiry, put options have the highest concentration near 56,000 and 55,500, marking these as key support levels. Conversely, call options at 56,500 and 57,000 hold significant open interest, indicating potential resistance and suggesting a trading range of 55,500–57,000 for the upcoming sessions. Traders should remain cautious, consider buying on dips, and maintain strict stop-loss levels to manage risks effectively amid ongoing market volatility and potential price fluctuations.

Support: 56000-55500

Resistance: 56500-57000

Bias- Sideways to Bullish

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