Trading Plan: Can Nifty 50 Sustain Above 25,900, Bank Nifty Hold 58,000 Amid Rangebound Trading?
The Indian stock market has entered a phase of cautious optimism, with benchmark indices — Nifty 50 and Bank Nifty — struggling to find a decisive direction. After a volatile week, traders are asking a crucial question: Can Nifty sustain above the 25,900 mark and can Bank Nifty hold on to 58,000? Let’s break down the market behavior, key technical levels, and what traders should plan for the coming sessions.
Market Overview: Sideways Moves with Limited Triggers
Indian equities traded in a tight range throughout the week, mirroring global uncertainty and mixed earnings reports. The Nifty 50 hovered between 25,800–26,000, while Bank Nifty oscillated between 57,800–58,400, showing that both indices are consolidating after a strong rally earlier this month.
The consolidation is largely due to profit-booking at higher levels and cautious sentiment ahead of major macroeconomic events such as the U.S. Fed policy update and domestic Q2 earnings announcements.
Despite subdued momentum, analysts believe that the underlying market structure remains positive as long as Nifty sustains above its critical support zone.
Nifty 50: Key Levels to Watch
- Support Zones: 25,750 – 25,800
- Resistance Levels: 26,050 – 26,200
On the daily chart, Nifty 50 is forming higher lows, which suggests the bulls are defending key support levels. However, repeated rejections near 26,000 indicate strong resistance from profit-taking and lack of fresh triggers.
If Nifty manages to sustain above 25,900, it may open the door for a short-term rally towards 26,200–26,300. On the flip side, a fall below 25,800 could invite selling pressure, dragging the index toward 25,600.
Technical Indicators:
- RSI (Relative Strength Index): Hovering around 55, signaling neutral momentum.
- MACD: Flat crossover pattern, showing indecision.
- 20-DMA (Daily Moving Average): Acting as immediate support at around 25,780.
In short, Nifty needs a decisive breakout above 26,000 for the next leg of the rally.
Bank Nifty: Bulls Defending 58,000, But With Weak Breadth
- Support Levels: 57,700 – 58,000
- Resistance Zones: 58,600 – 59,000
The Bank Nifty index has remained largely rangebound, with private banks showing weakness while PSU banks continue to display resilience. Heavyweights like HDFC Bank, ICICI Bank, and Axis Bank are facing resistance near their respective swing highs, which has capped the index’s upside momentum.
If Bank Nifty sustains above 58,000, it could see a rebound towards 58,600 or even 59,000. However, a break below 57,800 may lead to a correction toward 57,300–57,000, where strong buying interest is likely to emerge.
Technical Indicators:
- RSI: Around 52, suggesting neutral momentum.
- Volume Trend: Declining, indicating consolidation rather than distribution.
- 50-DMA: Positioned near 57,600 — a crucial level for medium-term traders.
Global & Domestic Cues
Global markets have turned cautious amid mixed U.S. economic data, volatile crude oil prices, and rising bond yields. Domestically, the focus remains on:
- Q2 Corporate Earnings – especially banking and IT sectors.
- RBI policy cues – whether the central bank continues its “pause” stance.
- FIIs and DIIs activity – FIIs have been net sellers lately, but domestic funds are providing support.
Trading Strategy for the Week
For traders, this is a stock-specific market rather than an index-driven rally. The broader indices are consolidating, which means positional trades should be taken with strict stop-losses.
Nifty Intraday Strategy:
- Buy on dips near 25,800 with a stop-loss below 25,700 and target 26,100.
- Sell near 26,100–26,200 with a stop-loss above 26,250 for targets of 25,900.
Bank Nifty Intraday Strategy:
- Buy near 57,900 for a target of 58,500 with a stop-loss at 57,700.
- Sell near 58,700 with a stop-loss above 59,000 for a downside target of 58,000.
Conclusion
The overall sentiment in the market remains cautiously positive. Both Nifty 50 and Bank Nifty are witnessing consolidation, which often precedes a decisive move. Sustaining above 25,900 and 58,000 respectively will be key for bulls to maintain control.
Traders should watch out for volume confirmation before taking positions and remain agile as the market navigates through earnings season and global headwinds.