Stock market outlook: Nifty 50 likely to touch 25,500 in coming weeks amid bullish trend — key levels to watch

Stock market today: Indian benchmark indices, Sensex and Nifty, extended their gains to the fourth straight session on Monday, buoyed by robust U.S. employment data, positive developments in India-U.S. trade negotiations, and supportive measures from the Reserve Bank of India.

At around 9:19 am, the BSE Sensex was up 423 points (0.52%) at 82,618, while the Nifty50 advanced 130 points (0.52%) to 24,132. The Nifty Bank climbed more than 0.4% to reach an all-time high of 57,049, supported by strong performances from Kotak Bank, IDFC First Bank, Canara Bank, and PNB.

On Friday, both indices rose almost 1% following the RBI’s unexpected move to cut the repo rate by 50 basis points and lower the cash reserve ratio (CRR) for banks by 100 basis points, indicating a more aggressive monetary effort to boost economic growth.

"The Nifty ended above 25,000 on Friday, as sentiment was boosted by the RBI's actions that included a larger-than-expected 50 bps cut to the repo rate and a 100 bps cut to the cash reserve ratio (CRR). Technically speaking, Friday's jump was able to negate the prior day's somewhat "weak" close, and earlier, the test of 24672, which we had mentioned, held successfully. Getting past 25116 is the only thing that bulls need to do from here on, and a break of 25260 will open the doors toward 25800 based on the pennant that seems to be complete," said Akshay Chinchalkar, Head of Research, Axis Securities.

For the day, he sees resistance and support at 25,120 and 24,820, respectively. Asian equities are a tailwind for today, he added. 

Nifty 50 key technical levels for this week

The Nifty 50 closed at 25,003.05 on Friday, registering a 1.02% gain over the previous week's close. The weekly chart reflects a sideways-to-bullish setup, as the index managed to close above the key psychological level of 25,000, indicating a potentially bullish outlook in the near term, according to Choice Broking.

“In terms of levels, Nifty has immediate support at 25,000 and 24,800, which could offer strong buying opportunities for traders on dips. Resistance is expected at 25,100 and 25,300, with the latter acting as a key hurdle. A sustained breakout above 25,300 could trigger a bullish rally, targeting 25,500 and 25,700 in the coming weeks,” said the firm in a note.

Support: 25000 - 24800

Resistance: 25100-25300

Bias: Sideways to Bullish

Bank Nifty key technical levels for this week

The Bank Nifty index closed at 56,578.40, near record high levels, registering a 1.49% gain over the previous week's close.

The weekly chart indicates buying from lower levels, and notably, the index has managed to sustain above the 56,500 mark. This buying interest suggests a potential continuation of bullish sentiment, with strong demand emerging on dips, indicating a sideways to bullish phase in the near term, according to the brokerage firm.

“The Bank Nifty index is likely to face significant resistance in the 57,000–57,500 range. If the index continues to move higher, HDFCBANK & AXISBANK from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBIN is anticipated to show strength,” the firm said.

Support: 56500-56000

Resistance: 57000-57500

Bias- Sideways to Bullish

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