The Nifty 50 Index (NSE: NIFTY) is currently consolidating after a strong upward rally, forming a classic bullish pennant pattern on the 1-hour chart. This technical setup, combined with Bollinger Band narrowing and moderate volume, suggests that a breakout may be imminent — with the potential to test new all-time highs.
Let’s analyze the chart structure, key levels, and what traders can expect in the coming sessions.
📊 Nifty 50 Chart Snapshot (1-Hour)
| Parameter | Value |
|---|---|
| Current Price | ₹25,434.70 |
| Day’s High | ₹25,465.25 |
| Day’s Low | ₹25,415.85 |
| Bollinger Band Mid (SMA 20) | ₹25,446.40 |
| Bollinger Band Upper | ₹25,552.62 |
| Bollinger Band Lower | ₹25,340.19 |
| Volume (Last Candle) | 11.1M |
🔍 Pattern Breakdown: Bullish Pennant in Action
The chart displays:
- A sharp rally from ~24,500 to 25,600, followed by a consolidation triangle that tapers to the right — forming a bullish pennant.
- Support trendline intact from the June 20 low.
- The current price is tightly coiled between the narrowing triangle and the 20-period SMA (₹25,446).
This setup typically resolves with a breakout in the direction of the prior trend, which was decisively bullish.
📈 Key Levels to Watch
| Type | Level |
|---|---|
| Immediate Resistance | ₹25,552 |
| Pennant Resistance | ₹25,500–25,520 |
| Support Trendline | ₹25,340 |
| Breakdown Support | ₹25,200 |
| Previous Swing High | ₹25,465 |
| Psychological Level | ₹25,600 |
A close above ₹25,520 on strong volume may validate the bullish pennant breakout, targeting ₹25,800+ in the near term. On the downside, a breakdown below ₹25,300 could invalidate the pattern.
💡 What Do Bollinger Bands Say?
- Bands are tightening, indicating a volatility squeeze — usually preceding a strong move.
- Price is hovering at the midline (SMA 20). A sharp push outside the upper band (₹25,552+) could act as a breakout trigger.
🧠 Strategy for Traders
📌 Intraday Traders:
- Wait for a clear breakout above ₹25,520 with volume above average.
- Long entry possible on breakout candle, stop-loss near ₹25,340.
📌 Swing Traders:
- Consider entering long positions on a close above the pattern, with a target of ₹25,800–26,000 and stop-loss below ₹25,200.
📌 Caution:
- Volume is currently moderate; breakout confirmation must include increased volume.
- Avoid trading inside the pennant zone due to potential false signals.
🔗 Related Analysis
👉 Also Read: JPPOWER Stock Breakout Above Bollinger Band with Heavy Volume – see how a similar breakout pattern played out in an NSE smallcap
⚠️ Disclaimer
This article is for informational and educational purposes only and does not constitute financial advice. All trading involves risk. Past performance is not indicative of future results. Please consult with a SEBI-registered advisor before making any investment decisions. Chart analysis based on TradingView data at the time of writing.
