Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
On Thursday, the benchmark index Nifty closed on a firm note, settling at 25182, marking a gain of 0.54%. The index formed a bullish candle pattern, signalling renewed buying interest after recent hesitation.
What stands out is that this was the highest closing level in the last two trading sessions, reflecting a shift in sentiment. Importantly, the index has partially invalidated the previous two sessions’ bearish setup, which was characterized by small-bodied candles with long upper shadows—a sign of intraday selling pressure.
This positive close suggests that bulls are attempting to regain control, though follow-through in the coming sessions will be crucial to confirm sustained momentum.
Among the Nifty constituents, Tata Steel and JSW Steel emerged as the top gainers, reflecting strong momentum in the metal space. On the flip side, Axis Bank and Titan were the notable laggards of the day. A key highlight of Thursday’s session was the broad-based participation, with all sectoral indices closing in the green. Nifty Metal, Nifty IT, and Nifty Healthcare led the charge, indicating strength across cyclical and defensive pockets alike.
The broader markets outperformed their frontline peers by a wide margin. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices posted robust gains, underlining strong interest in the broader universe. Market breadth remained firmly positive, with the Advance/Decline ratio skewed in favor of advancers. From the Nifty 500 basket, 296 stocks ended the session in the green, reinforcing the bullish undertone.
Nifty View
The benchmark index Nifty posted a strong performance on Thursday, forming a sizeable bullish candle on the daily chart. This move has effectively negated the bearish formations seen over the previous two sessions, which were marked by indecision and selling pressure at higher levels.
Technically, the index is trading above its key moving averages, reinforcing the underlying strength and suggesting that the short-term trend remains positive. Adding to the bullish sentiment, the RSI is currently quoting at 58.03 and is in a rising trajectory, indicating improving momentum and room for further upside.
Considering the current chart structure, the index is likely to test the 25300, followed by the 25450 level in the short term. While, on the downside, the support shifted higher in the zone of 25050-25030 level.
Bank Nifty View
The Bank Nifty index ended Thursday’s session on a positive note, forming a bullish candle with a minor shadow on both ends, indicating intraday volatility but a strong close. Technically, the index is trading above its crucial moving averages, which reinforces the short-term bullish bias and suggests underlying strength in the banking space.
Notably, the daily RSI has taken support near the 60.96 level and has since rebounded, signalling a potential continuation of upward momentum. This bounce from a key support zone in RSI adds conviction to the bullish setup. Overall, the price action and momentum indicators point toward a constructive outlook, provided the index sustains above its immediate support levels.
Talking about crucial levels, the zone of 55900-55800 will act as crucial support for the index. While, on the upside, the zone of 56400-56500 will act as an immediate hurdle for the index. Any sustainable move above the level of 56500 will lead to a sharp upside rally upto the level of 57200 in the short term.