Technical view: Nifty could hit 25,500 as long as it holds 24,700, Bank Nifty needs to sustain above 57,120 for target of 57,900

It noted that any intermittent dips should be viewed as buying opportunities, with key short-term support positioned at 24,700 and 24,400.

Shrikant Chouhan from Kotak Securities meanwhile noted that the index has formed a small candle on daily charts, which suggests "indecisiveness between the bulls and the bears". Chouhan said 25,000 for Nifty 50 and 82,000 for Sensex would act as the sacrosanct support zone for traders. If the indices manage to remain above these levels, then the uptrend is likely to continue. Nifty can move up to 25,400, while Sensex can hit 83,000 in that case.

However, in case Nifty and Sensex fail to remain above the 25,000 and 82,000 mark respectively, then the ongoing uptrend in the market may be in danger, Chouhan further said.

Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, is of the view that Nifty has broken out of 24,500 – 25,000 range, which indicates the start of a fresh cycle of upmove. "It is likely to extend towards 25,500 which coincides with the weekly upper Bollinger band. Crucial support is placed at 24,800 which is the 20-day moving average," he said.

He further added that Nifty is expected to continue to see the positive momentum with minor pullbacks. Traders should consider support zone 25,000 – 24,950 as buying opportunity, he added.

Bank Nifty

Bank Nifty hit a fresh lifetime high of 57,000 today, after RBI Governor Sanjay Malhotra announced the Monetary Policy Committee's (MPC) decision to cut the central bank's policy repo rate by 50 basis points, and slash cash reserve ratio (CRR) by 100 bps.

The index later pared some gains to close 0.46 percent higher at 56,839.60. According to Om Mehra, Technical Research Analyst at Samco Securities, Nifty Bank's new milestone confirms a decisive breakout from its month-long ascending triangle formation. He however noted that holding above the 56,100-56,200 breakout zone is crucial for the index.

If the index manages to maintain a sustained move beyond 57,120, then it can begin a fresh rally towards 57,700-57,900. "However, a drop below the breakout base may lead to short-term mean reversion, offering a cleaner risk-reward setup for fresh entries," Mehra noted, while adding that the overall trend in Nifty Bank remains firmly positive.

Dhupesh Dhameja, Derivatives Research Analyst at Samco Securities, meanwhile, noted that options flow into the index is turning decisively bullish. "Overall, the bias stays positive: as long as the index holds 56,300, dips should invite buying, while 57,050 is the next near-term hurdle," he said.

Bajaj Broking also noted that the index is likely to continue its upward trajectory in the week, with immediate support being seen at 55,400 on the downside. "With the index now trading in uncharted territory, resistance levels have shifted higher, with the next potential hurdles placed at 57,400 and 57,800," it said.

"The gap at 56,700 will act as key support, and only a close below this level may trigger profit booking and a breakout retest at 56,100. On the upside, a move above 57,050 will trap momentum shorts and push the index towards 57,500," said Anshul Jain, Head of Research at Lakshmishree Investments.

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