Could Nifty’s Closing Above 25,330 Spark a Bullish Rebound?
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Synopsis
The Indian stock market faced a downturn, with Nifty extending its losses. Experts suggest that a close above 25,330 could reignite bullish momentum, while caution is advised due to current market volatility. Stay updated on potential reversals and support levels as the week progresses.
Key Takeaways
- Nifty closed at 25,149.85, down 0.81%
- Key resistance at 25,330 for bullish momentum
- Important support levels at 25,000 and 24,750
- Market sentiment currently weak, caution advised
- Bank Nifty ended at 56,754.70, down 0.49%
Mumbai, July 12 (NationPress) The Indian stock market concluded the week on a downtrend, with Nifty marking its third consecutive day of losses on Friday.
Both the Nifty and Bank Nifty indices dipped into negative territory, influenced by a decline in IT stocks following the Q1 earnings report from Tata Consultancy Services (TCS) and renewed apprehensions regarding global trade disruptions triggered by fresh tariff concerns from the US administration.
The Nifty 50 settled at 25,149.85, reflecting a decrease of 0.81% in Friday's trading session. Over the week, the index fell 1.22%, breaking through essential support levels.
“The Nifty 50 ended the week below the critical support threshold of 25,330,” stated Mandar Bhojane from Choice Equity Broking. He pointed out that the index is currently in a short-term corrective phase near the vital support point of 25,000.
“From a technical perspective, Nifty has fallen beneath its previous swing low on the daily chart, suggesting it is in a short-term corrective phase from elevated levels,” Bhojane commented.
Prices are nearing the significant Fibonacci support zone around 25,000, where a potential reversal may be expected, given that the overarching bullish trend remains intact.
Nonetheless, the short-term sentiment appears to be weak. The Relative Strength Index (RSI) for Nifty currently registers at 48.75, trending downward, indicating a need for caution.
“A close above 25,330 could rekindle bullish momentum, potentially aiming for the range of 25,670–26,000. On the contrary, if 25,000 is decisively breached, the next support level would be 24,750,” Bhojane noted.
In parallel, the Bank Nifty index concluded the week at 56,754.70, marking a 0.49% drop compared to the prior week.
“This week, the Bank Nifty index formed a bearish-bodied candle with a long upper wick and a slight lower wick, supported by consistent trading volumes,” the analyst observed.
Bhojane added that this pattern indicates ongoing selling pressure and limited purchasing interest at elevated levels, suggesting the potential for a consolidation phase or a mild correction in the near future.
The weekly chart illustrated rejection at higher levels, with the index unable to maintain above the significant 57,000 mark.
Traders are encouraged to exercise caution, adopt a sell-on-rise strategy, and adhere to strict stop-loss levels to effectively manage risks amid the current market volatility and potential price fluctuations, advised the analyst.
Point of View
Our stance remains focused on providing impartial insights into market trends. The recent downturn in the Indian stock market, especially with Nifty's consecutive losses, signals the need for vigilance among traders, while the potential for a bullish reversal offers hope. We encourage our audience to remain informed and strategic in their trading approaches.
NationPress
13/07/2025
Frequently Asked Questions
What is the current status of the Nifty index?
The Nifty index closed at 25,149.85, down 0.81% for the week.
What could trigger a bullish trend for Nifty?
A close above 25,330 could reignite bullish momentum, targeting levels between 25,670 and 26,000.
What is the current sentiment in the market?
The near-term sentiment appears weak, as indicated by the downward trend in the Relative Strength Index (RSI) at 48.75.
What should traders do in this market condition?
Traders are advised to remain cautious, consider a sell-on-rise strategy, and maintain strict stop-loss levels.
What levels should traders watch for support?
The key support levels to watch are 25,000 and 24,750 if the current downtrend continues.
