The Indian stock market has experienced a significant rally recently, with the Nifty 50 and Bank Nifty showing considerable consolidation now. As global and domestic market conditions continue to evolve, investors and traders are left wondering whether the Nifty 50 can climb above 25,000 and if the Bank Nifty can surpass 56,000 during this sideways market phase.
In today’s trading session, both the Nifty 50 and Bank Nifty opened with a slight gap-up, indicating positive sentiment at the start. However, as the session progressed, both indices faced a sell-off, leading to a decline in their intraday gains in Bank Nifty and Nifty, trading flat at the moment.
Index Overview
The Nifty Index opened at Rs. 24,342.05, with a gap-up of up to 0.93 percent from its previous close of Rs. 24,335.95. The index reached a high of Rs. 24,396.15 but is currently trading close to its opening price.
The BankNifty Index opened at Rs. 55,382.40, with a gap-up of up to 0.83 percent from its previous close of Rs. 55,391.25. The index reached a high of Rs. 55,478.25 but is currently trading below its opening price.
Experts’ Outlook on Nifty and Bank Nifty
According to experts, the significant rally in the market is expected to continue as the Nifty 50 stays above the 24,450 – 24,550 mark and the Bank Nifty needs to sustain above the 55,100 mark, or the consolidation continues.
Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities
They stated that Nifty has gained over 2,700 points from its swing low of 21,743 on April 7. It is now trading above all key moving averages, indicating a bullish trend across all timeframes. Nifty has broken past the previous resistance level of 23,870, which is now expected to act as support. Additionally, a bullish Inverted Head and Shoulders pattern has formed on the weekly chart. On the upside, the next major resistance is seen around the 24,800 level.
The Banknifty after reaching a fresh all-time high near 56,100, Bank Nifty has entered a consolidation phase. Immediate support is seen at 54,176, and if it breaks this level, the index could extend its correction towards the next support at 52,900, which aligns with the 38.2% Fibonacci retracement of the rally from 47,702 to 56,098.
However, based on the overall trend, the index is expected to find buying interest at lower levels and continue its uptrend. Therefore, any corrections should be viewed as buying opportunities, with upside targets at 57,050 and 57,900.
Preeti K Chabra, Founder of Trade Delta
They stated that Nifty is currently in a consolidation phase on both the daily and hourly timeframes. The 24,350 level has become a key resistance zone, and a sustained breakout above this level could lead to an upward move towards 24,561, followed by 24,857.
The RSI on the daily chart is at 65.05, trading above the signal line and supported by an upward-sloping trendline, indicating bullish momentum. From a broader perspective, the weekly chart continues to show a bullish trend with higher highs and higher lows. The monthly chart is on track to close positively, with the RSI trending upward, reinforcing a positive market structure and supporting a buy-on-dips approach.
The Banknifty has been facing resistance around the 56,000 zone in recent trading sessions, which is acting as a strong barrier. The RSI on the daily chart is at 70, with a slight downward slope, indicating potential short-term exhaustion.
However, on the weekly timeframe, Bank Nifty continues to form higher highs and higher lows, signaling positive momentum. On the monthly chart, the index is set to close with a 7% gain, reflecting strength. Given the overall positive structure, we recommend a buy-on-dips strategy for Bank Nifty.
Written by Sridhar J
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