Introduction
The Nifty 50 index has entered a crucial phase after a recent pullback, showing early signs of recovery on both daily and hourly charts. While bulls are regaining momentum with higher lows, the benchmark remains below key resistance levels, suggesting that the market is still in a wait-and-watch zone. Traders are closely monitoring the price action around the 25,300–25,500 range to gauge whether the current bounce is sustainable or just a temporary relief rally before another leg down.
Technical Overview: Daily Chart Shows Early Signs of Stabilization
On the daily chart, Nifty 50 closed at 25,212.05, gaining 0.06% in a session that showed reduced selling pressure. The Bollinger Bands indicate that the index is consolidating near the midline, with the 20-day Simple Moving Average (SMA) acting as immediate resistance around 25,309.
Nifty 50 daily chart highlights support recovery and upcoming resistance zones.
The recent correction pushed Nifty closer to the lower Bollinger Band support, around 24,860, which has acted as a cushion for buyers. This level coincides with an earlier consolidation zone, making it a critical support area for medium-term trend confirmation. Additionally, the formation of a short-term upward trendline from recent lows suggests that buyers are gradually regaining control.
Volume analysis indicates declining selling pressure, with red bars shrinking, hinting at potential accumulation at lower levels. However, the index still faces stiff resistance at 25,500–25,600, a zone where previous attempts to sustain gains have failed. A breakout above this zone is necessary to resume the prior uptrend toward 26,278, which remains the next major upside target.
Market Sentiment and Key Levels
Looking deeper, the daily RSI (Relative Strength Index) is hovering near the neutral 50 zone, indicating neither overbought nor oversold conditions. This suggests that the market is at an equilibrium point where new triggers—either earnings updates, macroeconomic cues, or global trends—will determine the next direction.
Traders are particularly focused on two critical levels:
- Support Zone: 25,000–24,850 (lower Bollinger Band & previous breakout zone)
- Resistance Zone: 25,500–25,600 (recent supply zone & upper mid-level pivot)
A decisive close above 25,600 could fuel a fresh rally toward the previous swing high of 26,278, while a failure to hold above 25,000 could drag the index back into a broader consolidation phase.
Hourly Chart: Short-Term Recovery but Caution Ahead
On the hourly timeframe, Nifty 50 shows a sharper recovery after forming a temporary bottom near 25,000. The index has been making higher lows, respecting an ascending trendline that aligns with immediate support at 25,150–25,200.
Nifty 50 hourly chart reveals a short-term ascending support trendline with key resistance levels ahead.
Bollinger Bands on the hourly chart have started to contract, suggesting reduced volatility after the recent sharp drop. The hourly 20-SMA around 25,338 acts as a near-term resistance, coinciding with the mid-Bollinger level. This implies that unless Nifty closes above 25,350, the ongoing rebound might remain vulnerable.
Moreover, intraday volume spikes during upward moves suggest some renewed buying interest. However, the lack of follow-through buying above 25,300 highlights that traders remain cautious ahead of crucial resistance.
What Traders Should Watch in the Coming Sessions
From a short-term perspective, intraday traders should watch for price behavior near 25,350. A clean breakout above this zone could open room for a quick rally toward 25,500, whereas failure could lead to renewed selling pressure testing 25,150.
Key takeaways for different time horizons:
- Intraday Traders: Should closely track 25,300–25,350 for breakout confirmation.
- Swing Traders: Must wait for a clear daily close above 25,500 for a bullish continuation.
- Positional Traders: Should monitor whether 25,000 holds as a strong medium-term support before making fresh entries.
Additionally, the upcoming domestic earnings season and global market sentiment, including U.S. inflation data and crude oil price trends, could significantly influence Nifty’s movement.
Broader Market & Global Cues: Will They Support the Recovery?
Beyond the technical picture, broader market cues remain mixed. Indian equities are tracking a global backdrop where U.S. and European markets have shown mild weakness amid profit booking. On the domestic front, foreign institutional investors (FIIs) have turned slightly net sellers, while domestic institutional investors (DIIs) have cushioned the downside with steady buying.
This suggests that the Nifty’s recovery is not yet supported by strong external flows. Additionally, sectoral rotation remains a key factor, with IT and FMCG stocks outperforming while banking and metals lag. A sustainable index rally would require broad-based participation, which has been missing in recent sessions.
If global risk sentiment improves, especially after upcoming economic data releases, Nifty could gain tailwinds. However, if volatility rises globally, the index might revisit recent lows before any meaningful upside.
Future Outlook: Will Nifty Resume Its Uptrend or Stay Range-Bound?
Looking ahead, the Nifty 50 remains in a neutral-to-cautious zone. While there are early signs of a recovery, the index has not yet confirmed a strong bullish reversal. Traders and investors should watch for a daily close above 25,500, which would signal renewed bullish momentum toward 26,278.
On the downside, any breach below 25,000 would negate the short-term recovery and potentially lead to a deeper correction toward 24,600–24,400.
In conclusion, the next few sessions will be decisive for Nifty. If buyers can push the index above the immediate resistance zone, it could resume its upward trajectory. Until then, a range-bound movement between 25,000–25,500 seems likely, and traders should remain cautious with strict stop-losses.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Market conditions can change rapidly, and traders should consult with their financial advisors before making any investment decisions.
