Mumbai, June 8 Indian equity benchmarks Nifty and Bank Nifty closed the week on a positive note, showing signs of bullish momentum as both indices stayed above key support levels.
The outlook for the coming sessions remains sideways to bullish, with analysts recommending a ‘buy on dips’ strategy, according to the latest weekly report by Choice Broking.
The Nifty index ended the week at 25,003.05, up by 1.02 per cent. On the weekly chart, a strong bullish candle has formed with small wicks, indicating that buyers are active at lower levels.
The index managed to close above the crucial 25,000 mark, suggesting growing strength and a possible upside in the near term.
According to Choice Broking, Nifty is currently trading above all major exponential moving averages -- the 20-day, 50-day, and 200-day -- reflecting a strong uptrend.
The Relative Strength Index (RSI) is at 60.94, which further supports bullish sentiment. A sustained move above 25,100 could trigger fresh buying, with potential targets seen at 25,300, 25,500, and even 25,700 in the coming weeks.
The key support levels are marked at 25,000 and 24,800, where buyers are expected to emerge. On the other hand, call option data shows resistance around 25,100 and 25,300, aligning with technical resistance zones.
Meanwhile, Bank Nifty posted an even stronger weekly gain, closing at 56,578.40, up by 1.49 per cent.
The index is trading near record highs and has shown consistent strength above the 56,500 level, supported by strong trading volumes.
The weekly chart for Bank Nifty also formed a solid bullish candle, with buyers clearly stepping in on dips.
The index is trading above all key EMAs, indicating a healthy uptrend. The RSI for Bank Nifty stands at 67.45, hinting at continued bullishness.
Choice Broking suggests a trading range between 56,000 and 57,500 in the coming week. Key support is seen at 56,500 and 56,000, while resistance is expected near 57,000 and 57,500. Stocks like HDFC Bank, Axis Bank, and SBI are likely to support the uptrend within the banking space.
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