Nifty Watch: Bulls Not Done Yet, SEBI RAs Predict Fresh Rally If Index Tops 25,600

The Indian equity markets remain in a cautious mode as investors await clarity on the India-U.S. trade deal ahead of the crucial tariff deadline of July 9. However, technical indicators signal buying interest near key support zones. Analysts expect bullish continuation if the index breaks past 25,600 convincingly.

On Friday, the Nifty index respected the 25,400-25,380 support levels to recover at close and maintain the 25,400 mark, observed SEBI-registered analyst Bharat Sharma of Stockace Financial Services. 

He noted that the index formed a long-tailed candle on Friday, indicating buying interest at 25,400. On the daily timeframe, the Nifty remains above the 20-day Exponential Moving Average (EMA), indicating that the retracement phase may be reversing and the overall trend remains supportive. 

Sharma believes that the markets are heading steadily towards a new all-time high. For Monday’s trading session, he sees immediate support at 25,430, which, if breached, could lead to a fall toward 25,380 easily. 

If the Nifty falls below 25,380, it may continue to test lower supports at 25,300-25,200, introducing weakness for the day. On the upside, if the index gains above 25,400-25,430 and continues to rise, Sharma noted that the bias remains positive, indicating the potential for a continued recovery.

He pegged immediate resistance at 25,470-25,480, which, if surpassed, could trigger a rally to 25,550-25,600 and higher. A decisive move above 25,600 would signal strong bullish momentum and start the new round of target hunting on the upside. 

Sharma concluded that the daily timeframe suggested a proper uptrend is forming, with a probable higher low established near 25,400.

Ashish Kyal noted that a close above 25,520 on the 15-minute chart could signal a resumption of the uptrend toward 25,590 or higher levels. On the downside, he pegged Nifty support at 25,300. Currently, the index is moving in a narrow range, with no apparent signs of a breakout. For positional traders, a sustained break above 25,600 would be required to initiate fresh positions. Until such a breakout happens, Kyal suggests trading in the narrow range of 25,300-25,590.

And Prabhat Mittal pegged immediate support for the Nifty at 25,370 and resistance at 25,620, while he placed Bank Nifty support at 56,700 and resistance at 57,400.

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