Nifty pauses after rebound, trades within a narrow range

Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty ended the session at 25,642.80, down 0.52%, after failing to sustain the previous day's rebound. The index opened and marked the day's high near 25,757.65, but selling pressure emerged at higher levels, resulting in a lower close. The daily candle reflects hesitation near resistance, indicating that the recent recovery is facing friction.

Nifty holds above the 20-day SMA, which is placed near 25,580, providing short-term support. However, Nifty remains below the 50-day SMA, keeping the broader setup range-bound. This positioning suggests that while downside is contained for now, upside momentum remains capped.

On the daily chart, the rebound from recent lows has retraced toward the 0.382 Fibonacci level near 25,670, where the index faced rejection. Nifty is now consolidating above the 0.618 retracement zone. The RSI is placed near 52 and holding above the mid-zone, while MACD continues to improve, reflecting a gradual recovery rather than strong acceleration.

On the downside, 25,550-25,500 remains the immediate support zone, followed by 25,450. The immediate resistance band remains around 25,750-25,800. Nifty is consolidating after the recent rebound. A decisive move above resistance is required for continuation toward higher levels, while holding above support should keep the index in a narrow range in the near term.

Nifty Bank ended the session at 60,063.65, down 0.29%, after failing to cross the previous day's high. The index opened firm, tested higher zones near 60,328.30, but selling pressure emerged close to the falling trendline, resulting in a modestly lower close. The daily candle reflects consolidation after the recent sharp move.

The index holds above the 20-day and 50-day moving averages, with the 50-day average placed near 59,450, offering a strong base. However, it remains capped below the upper Bollinger Band and the falling trendline, which is acting as an immediate hurdle. Nifty Bank is moving sideways following the sharp recovery from recent lows.

The RSI is placed near 56, holding above the neutral zone. The MACD continues to improve and remains in positive territory.

On the downside, 59,800 remains the immediate support, followed by 59,600, which coincides with the 50-day moving average. On the upside, 60,300-60,350 remains the immediate resistance band, followed by 60,500.

Nifty Bank remains positioned close to its record zone but is currently in a pause phase after the recent sharp move.

Source : Equity Bulls

Keywords

SAMCOSecurities Nifty Sensex TechnicalView