Technical View: Nifty 50 ends 7-day rally, further consolidation likely with 24,800 as key support; Bank Nifty risks further profit booking below 58,700

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The Nifty 50 witnessed consolidation and mild profit booking after hitting an nearly eight-and-a-half-month high during the session, ending 0.2 percent lower on November 8, the Muhurat trading day. The index snapped its seven-day winning streak but closed the week 8.4 percent higher, marking its biggest weekly gain since February 2021. It also formed a long bullish candle on the weekly charts.

The profit booking was along expected lines, as the momentum indicator RSI approached overbought territory. However, the broader market structure continues to remain positive. The index may see further consolidation, with immediate support placed at 24,800, followed by the crucial support zone of 24,400–24,300. On the upside, 25,200 is expected to act as an immediate hurdle, followed by 25,500, which is near the 78.6 percent Fibonacci retracement level of the correction from 26,373 to 22,180, according to experts.

The Nifty 50 opened moderately higher and climbed to an intraday high of 25,132 but failed to sustain those levels. The index remained range-bound for most of the session before closing 44 points, or 0.18 percent, lower at 24,986.

On the daily charts, the index formed a small bearish candle with a minor upper wick, indicating profit booking.

The index remained comfortably above all key moving averages, with the short- and medium-term moving averages continuing to trend upwards. The RSI declined to 77.35 from 78.55 but remained well above its signal line. The MACD maintained a strong bullish crossover, although the green histogram bar contracted after expanding for eight consecutive sessions. Together, these indicators suggest that the broader bullish momentum remains intact, although some moderation in momentum is emerging.

"Technically, the Nifty has shown strong momentum and is now trading around the 25,000 mark. The immediate support zone is around 24,700–24,800, while a sustained move above 25,000 could open the possibility of further upside towards 25,300–25,500," Gaurav Udani, Founder and CEO of Thincredblu Securities, said.

However, he believes some consolidation and profit booking would be healthy after the sharp rally. "I would favour a buy-on-dips approach rather than chasing sharp upward moves," he said.

The weekly options data indicated that the 25,500 strike, where the maximum Call open interest is concentrated, could act as a crucial resistance zone. This is followed by the 25,000–25,100 strikes, which have the next-highest Call open interest and are likely to act as immediate resistance.

On the other hand, the 24,500 strike, which has the maximum Put open interest, is expected to provide crucial support to the index.

Meanwhile, the India VIX, which measures expected market volatility, rose further to 18.43, up 5.53 percent on Sunday, signalling the possibility of increased volatility. Hence, bulls need to remain cautious.

Bank Nifty

The banking index ended lower for the first time in five consecutive sessions, declining 235 points, or 0.4 percent, to 58,851 and forming a noticeable bearish candle on the daily time frame. However, for the week, the index surged 7.61 percent, marking its biggest weekly rally since April 2026, and formed a large bullish candle on the weekly charts.

The broader structure remains healthy, as Bank Nifty continues to trade comfortably above all key moving averages. However, further consolidation cannot be ruled out following the recent sharp rally.

The RSI remained above the 60 mark, despite declining to 72.13 from 74.57 on Sunday. The MACD maintained its uptrend, with the green histogram bar expanding for the eighth consecutive session. Together, these indicators point to sustained bullish momentum, despite the day's decline.

"In terms of key levels, the 58,700–58,500 band now represents immediate support, followed by a stronger support zone at 57,600–57,400," Osho Krishan, Chief Manager – Technical and Derivative Research at Angel One, said.

On the upside, the 59,200–59,300 band is likely to act as an immediate resistance zone, while a more formidable hurdle lies within the bearish gap zone of 60,200–60,500, he added.

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.