The Bank Nifty index is likely to face significant resistance in the 57,000–57,500 range - Choice Broking Ltd
Nifty
The NIFTY index closed at 25,003.05, registering a 1.02% gain over the previous week's close. The weekly chart reflects a sideways-to-bullish setup, as the index managed to close above the key psychological level of 25,000, indicating a potentially bullish outlook in the near term.
This week, a strong bullish candle with slightly lower wicks has formed, reinforcing the presence of buying interest at lower levels. This price action reflects bullish momentum and suggests that buyers are stepping in on dips. While this suggests growing strength in the trend, a sustained break and close above the 25,100 mark could signal the continuation of the bullish move, likely attracting fresh buying interest and paving the way for further upside momentum.
On the weekly timeframe, Nifty is trading above all its key Exponential Moving Averages (EMAs), including the short-term (20-day), medium-term (50-day), and long-term (200-day) 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 60.94, reflecting growing bullish momentum and showing the potential for a reversal from the recent sideways trend to the upside. This suggests that buying pressure is increasing, which could lead to further gains in the near term.
In terms of levels, Nifty has immediate support at 25,000 and 24,800, which could offer strong buying opportunities for traders on dips. Resistance is expected at 25,100 and 25,300, with the latter acting as a key hurdle. A sustained breakout above 25,300 could trigger a bullish rally, targeting 25,500 and 25,700 in the coming weeks.
The India VIX, a key indicator of market volatility, declined by 3.00% to close at 14.6300 on the daily time frame, reflecting reduced uncertainty. In the derivatives segment, open interest data shows significant call writing at the 25,100 and 25,300 strikes, indicating resistance at these levels. Conversely, the highest put open interest was seen at the 24,800 strike, highlighting strong support at this level.
Support: 25000 - 24800
Resistance: 25100-25300
Bias: Sideways to Bullish
Bank Nifty
The Bank Nifty index closed at 56,578.40, near record high levels, registering a 1.49% gain over the previous week's close. The weekly chart indicates buying from lower levels, and notably, the index has managed to sustain above the 56,500 mark. This buying interest suggests a potential continuation of bullish sentiment, with strong demand emerging on dips, indicating a sideways to bullish phase in the near term.
This week, the Bank Nifty index formed a strong bullish candle with a small lower wick, supported by consistent trading volumes. This indicates sustained buying interest and strong support at lower levels, reinforcing the bullish momentum. The price action suggests that buyers remain in control, and any dips are likely to be seen as buying opportunities, pointing toward a continuation of the uptrend in the coming sessions. A "buy on dips" strategy is recommended as long as the index holds above 55,500, with higher targets placed at 57,000 and 57,500.
On the weekly timeframe, Bank Nifty 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). This indicates an overall upward trend, and buying at lower levels suggests that a sideways to bullish phase is underway. The index has managed to hold at higher levels, with downside support near the 56,500–56,000 range. The Relative Strength Index (RSI) stands at 67.45, indicating a mildly bullish bias. Notably, the index has broken out of the sideways range in which it was trading over the past few sessions, signaling renewed momentum and the potential for further upside.
The Bank Nifty index is likely to face significant resistance in the 57,000–57,500 range. If the index continues to move higher, HDFCBANK & AXISBANK from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBIN is anticipated to show strength.
For the ongoing expiry, put options show the highest open interest concentration near 56,500 and 56,000, marking these as key support levels. Conversely, significant call option open interest at 57,000 and 57,500 indicates potential resistance, suggesting a likely trading range of 56,000–57,500 in the upcoming sessions. Traders are advised to remain cautious, adopt a "buy on dips" approach, and maintain strict stop-loss levels to manage risks effectively amid ongoing market volatility and potential price fluctuations.
Support: 56500-56000
Resistance: 57000-57500
Bias- Sideways to Bullish
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