Are Nifty and Bank Nifty’s Technical Charts Indicating Bullish Momentum Ahead?
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Synopsis
As both Nifty and Bank Nifty signal <b>bullish momentum</b>, analysts suggest a prudent ‘buy on dips’ strategy. With the Nifty surpassing crucial levels and Bank Nifty nearing record highs, investors are keen to understand the outlook and potential trading ranges in this thriving market.
Key Takeaways
- Nifty closed the week at 25,003.05, gaining 1.02%.
- The index formed a strong bullish candle, indicating active buying.
- Key resistance is noted at 25,100 and 25,300.
- Bank Nifty achieved a closing price of 56,578.40, up 1.49%.
- The index is trading near record highs and shows consistent strength.
Mumbai, June 8 (NationPress) The Indian equity indices, Nifty and Bank Nifty, concluded the week positively, signaling a bullish momentum as both benchmarks remained above significant support thresholds.
The forecast for upcoming sessions appears to be sideways to bullish, with analysts advocating a ‘buy on dips’ approach, as highlighted in the latest weekly report by Choice Broking.
The Nifty index wrapped up the week at 25,003.05, marking a rise of 1.02 percent. The weekly chart displays a robust bullish candle with small wicks, indicating active buying at lower levels.
This index successfully closed above the critical 25,000 threshold, suggesting increasing strength and the potential for further upside in the near future.
Choice Broking notes that the Nifty is currently trading above all major exponential moving averages—including the 20-day, 50-day, and 200-day—indicating a strong upward trend.
The Relative Strength Index (RSI) stands at 60.94, further bolstering bullish sentiment. A sustained move above 25,100 could ignite fresh buying, with targets projected at 25,300, 25,500, and even 25,700 in the weeks ahead.
Key support levels are positioned at 25,000 and 24,800, where buying activity is anticipated. Conversely, call option data indicates resistance around 25,100 and 25,300, aligning with technical resistance areas.
On another note, Bank Nifty achieved an even more impressive weekly gain, closing at 56,578.40, an increase of 1.49 percent.
This index is trading close to all-time highs and has demonstrated consistent strength above the 56,500 level, supported by robust trading volumes.
The weekly chart for Bank Nifty has also formed a solid bullish candle, indicating that buyers are stepping in during dips.
This index trades above all key EMAs, reflecting a healthy upward trend. The RSI for Bank Nifty is at 67.45, suggesting ongoing bullishness.
Choice Broking recommends a trading range between 56,000 and 57,500 in the upcoming week. Key support is seen at 56,500 and 56,000, while resistance is expected near 57,000 and 57,500. Stocks such as HDFC Bank, Axis Bank, and SBI are likely to bolster the uptrend in the banking sector.
Point of View
We at NationPress acknowledge the current bullish trends in Nifty and Bank Nifty, which are indicative of a resilient market. It's crucial for investors to stay informed and approach the market with a balanced strategy, especially amidst fluctuating conditions.
NationPress
08/06/2025
Frequently Asked Questions
What does a bullish sentiment in the market indicate?
A bullish sentiment indicates that investors expect prices to rise, which can lead to increased buying pressure and higher valuations.
What are the key support levels for Nifty?
The key support levels for Nifty are at 25,000 and 24,800, where buyer activity is anticipated.
How can I implement a 'buy on dips' strategy?
A 'buy on dips' strategy involves purchasing stocks when their prices drop temporarily, with the expectation that they will rise again.
What is the significance of the Relative Strength Index (RSI)?
The RSI is a momentum oscillator that measures the speed and change of price movements, helping to identify overbought or oversold conditions.
Which stocks are likely to support the Bank Nifty uptrend?
Stocks such as HDFC Bank, Axis Bank, and SBI are expected to support the uptrend within the banking sector.
