Nifty Holds 24,265: Bullish Trend Intact, RSI Signals Caution

The Nifty concluded Thursday’s session at 24,395, securing its position above both 20-day and 200-day daily exponential moving averages. This sustained trade suggests a constructive near-term outlook for bullish traders.

Nifty’s Crucial Levels

Vinay Rajani of HDFC Securities highlighted the importance of maintaining levels above these moving averages. Immediate support for the index is identified at 24,265.

Further support rests at 24,000, while key resistance zones are marked at 24,630 and 24,750.

A consistent trade above 24,265 is expected to preserve a positive short-term bias. Conversely, a decisive close below this level could weaken the current setup.

Momentum Indicators Signal Moderation

Despite the encouraging price action, momentum indicators show signs of easing. Ponmudi R, CEO of Enrich Money, observed a decline in the Relative Strength Index (RSI) to 52.

This indicates a loss of momentum, though the RSI remains marginally above the neutral 50 level.

Bank Nifty’s Range-Bound Session

The Bank Nifty experienced a weak opening, followed by a range-bound phase, ultimately closing at 57,635.

The index registered a 0.43% decline, forming a small-bodied bearish candle on the daily chart, which signals indecision among market participants.

Bank Nifty Support and Resistance

Sudeep Shah of SBI Securities pointed out that immediate resistance for Bank Nifty lies within the 57,900-58,000 zone. Immediate support is established between 57,200 and 57,100.

A decisive move above 58,000 could strengthen a pullback towards 58,400-58,800. However, a break below 57,100 would likely weaken the near-term setup.

Market participants will monitor these critical levels closely for both the Nifty and Bank Nifty in the upcoming sessions, with bullish sentiment contingent on maintaining key support thresholds.