Technical View: Doji formation signals rangebound Nifty, Bank Nifty eyes 57,800 as VIX stays subdued

Nifty Outlook

The Nifty 50 closed with moderate gains after rangebound trading on July 1, defending the 25,500 level on a closing basis for another session. The index traded within the previous day’s range and formed a Doji-like pattern on the daily chart, indicating continued consolidation and rangebound movement in the upcoming sessions.

As long as the index holds above the 25,400–25,300 zone, an upward move toward 25,700–25,800 remains possible. A breakout above that could take the index toward the next key hurdle at 26,000. On the downside, 25,200 is expected to act as a crucial support level, according to experts.

The Nifty 50 stayed in positive territory for most of the session amid rangebound trade, ending the day at 25,543, up 25 points.

“While the benchmark Nifty index formed a Doji candlestick pattern on the daily chart — a classic sign of indecision among market participants — the broader trend remains constructive,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.

The index continues to trade above its key moving averages, indicating that the underlying bullish structure remains intact despite the short-term pause. Additionally, a bullish chart pattern of higher tops and bottoms is forming on the daily chart. Further consolidation or minor weakness could set the stage for a short-term base.

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, any further consolidation or weakness could find strong support around the 25,400–25,300 levels, from where a sharp bounce is possible.

“A decisive move above the high of 25,700 could open the next upside targets of around 26,000–26,200 in the near term,” he added.

The daily RSI remains comfortably in the bullish territory, though it has been oscillating within a narrow range over the last two sessions — suggesting a phase of momentum consolidation.

Weekly options data indicated that the Nifty 50 may trade in the 25,400–25,700 range in the near term. Maximum Call open interest was seen at the 26,000 strike, followed by 25,600 and 25,700, with the highest Call writing at 25,600, and then at 26,000 and 26,150. On the Put side, the 25,500 strike held the maximum Put open interest, followed by 25,000 and 25,400, with the most significant Put writing seen at 25,500, followed by 25,400 and 24,800.

Bank Nifty

The Bank Nifty outperformed the Nifty 50, rising 147 points to close at a new all-time high of 57,459 on above-average volumes. It formed a small bullish candle with a minor upper wick and a long lower shadow on the daily chart, indicating buying interest at lower levels.

According to Sudeep Shah, the broader trend of the banking index remains bullish, with the index hovering near its record highs.

“The zone of 57,200–57,100 will act as key support. As long as the index trades above 57,100, it is likely to test 57,800 followed by 58,200 in the short term,” he said.

India VIX

Meanwhile, the India VIX, which measures expected market volatility, remained in the 12–13 range. It fell 2.01 percent to 12.53, continuing to reflect subdued volatility and supporting the bulls’ camp.

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