Banks Ready for Next Rally — Nifty Needs to Confirm Itself

NIFTY bounced exactly from our support at 25335, which I mentioned in the last commentary.

At first glance, it looks like a solid recovery, but internally, the momentum still feels weak as the index failed to close above the previous day’s close.

So we need a follow-up move tomorrow to confirm whether this bounce can actually sustain.

For now, I’ll stay sideways until the market confirms its direction.

I’ll be watching the 25550 resistance closely. Only if the market gives a strong close above this level will I consider going long on the index, because above 25550 we could see sharp short covering straight toward 25800.

Support remains at 25335. A drop below this could go very wrong — a fall toward 24700–24600 would then be possible.

BANKNIFTY, on the other hand, looks much better. Both its intraday and daily structures are bullish, clearly showing that banks may lead the next rally.

It has strong support at 57350 and resistance at 58250. If this support holds through the week, we might see 60300 levels very soon.

Many sector-specific stocks are showing good momentum setups that could perform well next week. Still, treat those bounces as profit-booking opportunities, not long-term holds. We’ll get better setups ahead.

You can trade confidently, but make sure to lock in your profits.

Sector-wise, CNXFINANCE , CNXMETAL , and CNXAUTO Parts stocks look strong for swing trades.

That’s all for the day. Take care and have a profitable week ahead.

📊Levels at a glance:

Nifty Support: 25335 (break = 24700–24600)
Nifty Resistance: 25550 (break = short covering to 25800)
BankNifty Support: 57350
BankNifty Resistance: 58250 (above = rally to 60300)
Bias: Sideways till confirmation
Sectors to watch: Financials, Metals, Auto Parts
Strategy: Trade swings, book profits on bounces