The Indian stock market ended Friday’s session on a positive note, with the benchmark Nifty 50 gaining 65 points to close at 23,719. Despite maintaining positive momentum throughout the trading session, the index once again failed to close decisively above its 20-day EMA, currently placed near the 23,800 mark. Market experts believe this level will play a crucial role in deciding the next directional move.
Nifty Shows Improving Momentum
The index opened higher at 23,671, which also remained the day’s low, and gradually moved upward during the session. Nifty touched an intraday high of 23,836 before ending with gains of 0.27 percent.
Technical charts indicate improving market sentiment as the index formed a bullish candle on the daily timeframe and managed to close above its 10-day EMA for the first time since May 6. The formation of higher lows over the last few sessions also signals strengthening buying interest.
Analysts believe that if Nifty manages to sustain above the 20-DEMA in the coming week, the index could move towards the 24,000 and 24,300 levels. On the downside, immediate support is placed near 23,500–23,400. A breakdown below this zone may trigger fresh selling pressure.
Indicators Suggest Bearishness Is Weakening
Momentum indicators are showing signs of recovery:
RSI has climbed to 47.19 and is nearing a bullish crossover.
MACD remains negative, but the red histogram bars have been shrinking continuously for the last seven sessions.
The index also reclaimed the 38.2% Fibonacci retracement level of the April rally on the weekly chart.
These signals suggest that bearish momentum is gradually weakening and the market may be preparing for a recovery move.
Options Data Signals Key Levels
Monthly options data highlights 24,000 as the biggest resistance zone due to maximum Call open interest. Meanwhile, 23,500 holds the highest Put open interest, making it a strong support level for traders.
The India VIX remained stable near 17.82, indicating that volatility continues to stay elevated. Analysts believe a sustained move below the 16 mark would further strengthen bullish confidence in the market.
Bank Nifty Outperforms
NIFTY Bank outperformed the broader market and surged 616 points, or 1.15 percent, to close at 54,055, mainly supported by strong buying in private banking stocks.
The banking index formed a bullish candle and climbed back above the 50% Fibonacci retracement level of the April rally. Technical indicators also improved significantly:
RSI rose to 45.87 with a bullish crossover.
MACD histogram continued to shrink for the fifth consecutive session.
Experts believe Bank Nifty faces immediate resistance around 54,400–54,500. A breakout above this zone could push the index towards 54,900 and later 55,300 in the short term.
On the downside, strong support is placed in the 53,500–53,600 range.
Trading Setup for Next Week
For traders, the coming week will be crucial as both Nifty and Bank Nifty approach important resistance zones. A decisive breakout above key moving averages may trigger fresh buying momentum, while failure to sustain higher levels could keep markets range-bound.