Technical Analysis: Nifty Faces Key Resistance at 25,300-25,600, Stable Volatility Suggests Bullish Trend

Indian Equity Market Review

The Sensex settled at 82,248.61, down 27.46 points or 0.03% from the previous day, while the Nifty closed at 25,496.55, up 14.05 points or 0.06%. The benchmark indices experienced a volatile session, with investors remaining cautious ahead of the US-Iran talks.

Market Analysis

Analysts noted that the Nifty needs to decisively move out of the 25,300-25,600 band to establish a clear directional trend. The index's inability to reclaim the 25,500-25,600 zone capped the upside, with support seen near 25,400-25,300.

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Volatility Index

The volatility index, often referred to as the fear gauge, declined by over 3% to 13.06. This indicates lower uncertainty and a decrease in market volatility.

Technical Analysis

• Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the 50-day EMA zone of 25,630-25,660 will act as an immediate hurdle for the Nifty.
• A sustained move above 25,660 will lead to a sharp upside rally up to the 25,800 level.
• On the downside, the zone of 25,380-25,350 will act as crucial support for the index.

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Bank Nifty View

• Sudeep Shah added that the 60800-60700 range will continue to serve as a crucial support base for the Bank Nifty index.
• A sustained hold above this zone will maintain the positive undertone and prevent a deeper corrective move.
• On the upside, the region between 61400-61500 is expected to act as a significant resistance band, where supply pressure has previously capped upward momentum.