Trading Plan: Will Nifty 50 continue to outperform Bank Nifty?

The benchmark Nifty continues to trade near its 8-month high, reflecting sustained optimism in the broader market. However, over the last three trading sessions, the index has entered a consolidation phase, moving within a narrow range of 25,055 to 25,222. This price action has resulted in the formation of small-bodied candles on the daily chart for three consecutive sessions—signaling a pause in momentum and a lack of clear conviction from both bulls and bears.

This consolidation suggests the market is currently taking a breather after a recent rally, awaiting fresh triggers for the next leg of the move. Adding to this, the RSI on the daily timeframe is also showing signs of exhaustion, as it remains rangebound and lacks further upside traction. This indicates reduced strength in the short term, despite the index holding at higher levels.

While the Bank Nifty is witnessing profit-booking, it's noteworthy that the Nifty IT index has started providing crucial support to the market. The resilience in IT stocks is helping the Nifty sustain near its highs and is playing a balancing role as financials take a back seat.

A breakout above the 25,222 level could reignite bullish momentum and pave the way for further gains toward 25,500, while a dip below 25,055 may lead to mild profit-booking. In that case, the 10-day EMA zone of 24,930–24,900 is likely to provide support.

Key Resistance: 25,222, 25,500

Key Support: 25,055, 24,900

Strategy: Buy Nifty Futures between 25,170–25,220, with a stop-loss of 25,090, targeting 25,450–25,550.

Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan

On the daily charts, we can observe that the Nifty, post the breakout on June 9, has been consolidating at higher levels. The daily momentum indicator has a positive crossover, and hence this dip towards the support zone of 25,100–25,050 should be considered a buying opportunity. On the upside, the immediate hurdle is placed at 25,230–25,250. Overall, the outlook is bullish, and we expect stock-specific action to continue.

Key Resistance: 25,200, 25,250

Key Support: 25,100, 25,050

Strategy: Buy Nifty Futures on a dip towards 25,100, with a stop-loss of 25,000, targeting 25,200.

Rupak De, Senior Technical Analyst at LKP Securities

Overall sentiment remains positive as the Nifty 50 continues to hold above the breakout point. Additionally, a golden crossover is in place, which supports the bullish outlook. Any dip should be viewed as a buying opportunity. Crucial support is placed at 24,850. As long as the index holds above this level, the trend is likely to remain positive, with potential to move toward 25,350 in the short term.

Key Resistance: 25,250, 25,350

Key Support: 25,000, 24,850

Strategy: Buy Nifty June Futures above 25,220, with a stop-loss of 25,149, targeting 25,350.

Bank Nifty - Outlook and Positioning

Sudeep Shah, the Deputy Vice President and Head of Technical and Derivative Research at SBI Securities

The banking benchmark index, Bank Nifty, is witnessing mild profit-booking after hitting a fresh all-time high earlier this week on Monday. This pullback comes as a natural breather following a strong uptrend in recent sessions. On the technical front, the daily RSI has eased from its recent peak of 69.31, indicating a loss of short-term momentum. The cooling of the RSI suggests that the index may continue to consolidate or witness a minor corrective phase before attempting a fresh breakout.

Despite the recent dip, the overall structure remains positive, and any further decline could offer buying opportunities near key support zones, provided broader market sentiment remains intact. Talking about crucial levels, the 10-day EMA zone of 56,150–56,100 will act as immediate support. On the upside, the zone of 56,700–56,800 will act as a crucial hurdle. If the index sustains above 56,800, it is likely to test 57,500, followed by 58,000 in the short term.

Key Resistance: 56,700, 56,800, 57,500

Key Support: 56,150, 56,100

Strategy: Buy Bank Nifty Futures between 56,400–56,500, with a stop-loss of 56,000, targeting 57,150–57,350.

Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan

Bank Nifty has been witnessing a pullback post-breakout. A retest of the breakout is possible, and hence dips towards 56,000 should be considered a buying opportunity. On the upside, 57,000 is the immediate hurdle and target area. The daily momentum indicator has a positive crossover, and thus consolidations should be viewed as buying opportunities.

Key Resistance: 57,000, 57,100

Key Support: 56,100, 56,000

Strategy: Buy Bank Nifty Futures on dips towards 56,000, with a stop-loss of 55,700, targeting 57,000.

Rupak De, Senior Technical Analyst at LKP Securities

Bank Nifty formed a bearish candlestick on the daily chart, coupled with a negative RSI divergence—indicating potential weakness ahead. A pullback towards its 10-day EMA, positioned around the 56,000 mark, appears likely. In the near term, a cautious stance is recommended, as the trend may shift to sideways or mildly bearish. That said, the broader outlook remains constructive as long as the index holds above 55,700. Immediate support is placed at 56,000, while resistance is seen near Wednesday’s high of 56,800. The key positional support lies at 55,700.

Key Resistance: 56,800, 57,100

Key Support: 56,000, 55,700

Strategy: Buy Bank Nifty June 56,200 strike Put above Rs 500, with a stop-loss of Rs 429, targeting Rs 650.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.