Market Overview
After staging a sustainable rebound from the crucial trendline support near 25,300 levels on Friday, the Nifty 50 extended its upmove on Monday amid volatility and ended higher by 82 points at 25,574. The index snapped its three-session losing streak.
The market opened on a positive note and advanced further in early trade but encountered mild resistance near 25,650 levels before slipping into a late-session decline.
Overall, the index traded in a narrow band between 25,500 and 25,650 throughout the day.
Among top performers, Infosys, Bajaj Finance, and HCL Tech led the gains, while Trent, Max Healthcare, and Tata Consumer faced selling pressure.
The broader market outperformed, with the Nifty Midcap 100 gaining 0.47% and the Nifty Smallcap 100 rising 0.35%.
Sectoral performance was mixed, as IT, Pharma, and Metal indices closed in the green, while FMCG, Realty, and Media witnessed declines.
Renewed foreign inflows also supported the market sentiment, with FIIs buying shares worth ₹4,581 crore and DIIs adding ₹6,675 crore in equities.
Market Outlook
The market continues to show resilience after defending the crucial 25,300 support zone, indicating strength in the broader trend. However, the index faces stiff resistance near 25,650–25,700, where selling pressure has been evident.
A breakout above 25,700 could take the Nifty toward 26,000, while dips around 25,400–25,300 are expected to attract buying interest.
The broader market structure remains constructive, and a breakout above 25,650 could trigger an upward move toward 25,800.
A move above 25,600 will be crucial to confirm a directional uptrend; until then, the index may continue its sideways consolidation.
The Nifty 50 appears to be in a consolidation phase, with the 50-day EMA near 25,338 acting as a strong support and resistance placed at 25,680–25,803.
Setup 1 — Nifty 50: Key Resistance & Support Levels
Nifty Close: 25,574
- Resistance (Pivot Points): 25,650 / 25,700 / 25,803
- Support (Pivot Points): 25,400 / 25,350 / 25,300
Market View:
The Nifty 50 formed a bullish candle with a long lower shadow on the daily charts, indicating buying interest at lower levels despite mild pressure near the upper zone.
The RSI has recovered to 52, while the MACD is flattening out near the neutral line — hinting at stabilising momentum.
Outlook: Sustaining above 25,700 could push the index toward 25,900–26,000, while holding 25,400 will be crucial for maintaining bullish momentum.
Setup 2 — Bank Nifty: Key Resistance & Support Levels
Bank Nifty Close: 57,900
- Resistance (Pivot Points): 58,120 / 58,300 / 58,520
- Support (Pivot Points): 57,550 / 57,380 / 57,150
Market View:
The Bank Nifty rebounded after two weak sessions, forming a bullish candle on the daily chart. The index is trading above its 20-day EMA and is likely to stay range-bound before a clear breakout.
The RSI has moved up to 62.7, showing positive bias, though a move above 58,200 is essential for sustained strength.
Outlook: A decisive close above 58,200 could lead to a rally toward 58,700–59,000, while support lies near 57,400–57,300.
Setup 3 — Sectoral Overview
| Sector | Sentiment | Commentary |
|---|---|---|
| IT | Positive | Backed by strong buying momentum and renewed global cues. |
| Pharma | Positive | Outperformance continues amid defensive rotation. |
| FMCG | Neutral | Mild profit booking seen post recent rallies. |
| Metals | Mildly Positive | Benefiting from rebound in global commodity prices. |
| Banking & Financials | Neutral to Positive | Range-bound trade, likely breakout above 58,200. |
Setup 4 — India VIX
The India VIX, which measures market volatility, slipped 0.74% to 11.78, reflecting lower volatility and stable sentiment.
A sustained reading below the 13–14 zone supports a bullish environment for the near term.
Setup 5 — Strategy for the Day by Dhwani Patel
- Focus on buy-on-dips strategy near key supports.
- Watch for breakout confirmation above 25,700 for further momentum.
- Maintain tight stop-losses in high-beta counters.
- Track IT, Pharma, and Metal sectors for short-term opportunities.
Key Takeaways
| Index | Bias | Bullish Above | Bearish Below | Range |
|---|---|---|---|---|
| Nifty 50 | Positive | 25,700 | 25,400 | 25,400–25,900 |
| Bank Nifty | Neutral to Positive | 58,200 | 57,400 | 57,400–58,700 |
Dhwani Patel’s Market Insight
“The market is slowly stabilising after recent volatility. A sustained move above resistance levels could spark fresh momentum in key sectors. Traders should stay selective, focus on volume confirmation, and avoid aggressive shorts unless Nifty closes below 25,400.”
Disclosure & Disclaimer: Dhwani Patel (SEBI Registration No: INH200008608) is a SEBI-registered Research Analyst. This report is intended solely for educational and informational purposes and should not be considered as investment advice. Trading and investing in securities involve financial risk; investors should consult their financial advisors before taking positions.
