Momentum Continues, But Are We Near a Pause?

After a strong close last week, Indian indices opened the new week with even more strength. Nifty surged 1.15%, closing at 24125.55, while Bank Nifty rose 1.87% to end at 55304.50—its highest level ever.

Nifty Analysis

In our previous analysis (17 April), we noted a hanging man candle that was quickly invalidated, paving the way for this bullish continuation. Now, Nifty has closed above its 200-DMA and broken past the key 24000 level, aligning with the 50% Fibonacci retracement from the Sep 2024–Apr 2025 range.

However, the index has risen over 11% in just 7 trading sessions, which raises the probability of a short-term pause or consolidation.

OI & PCR Data:

• Nifty Futures OI down by 0.8% → Short Covering

• PCR stands at 0.79 ATM, 1.1 overall → Neutral to Bullish

📌 Support: 24000 | Resistance: 24200

View: Neutral to bullish. Trend remains strong, but we stay cautious of near-term exhaustion.

Bank Nifty Analysis

Bank Nifty delivered a clean breakout from its 7-month consolidation range (48000–54450), climbing to a new lifetime high. We anticipated this move in our April 16 blog when Bank Nifty entered an upward trending channel.

Derivatives Data:

• Bank Nifty Futures OI up by 0.98% → Long Buildup

View: Bullish
As long as the index stays above the breakout zone, dips may be bought into. The momentum remains well-supported by price and OI action.

Final Word:
The broader trend is undeniably strong, but we stay mindful of the recent sharp upmove. A short-term breather would be healthy for sustaining this rally.

Let’s see what the market brings today.