Nifty and Bank Nifty Hold Above Moving Averages, Signalling Cautious Optimism in Technical Outlook

Nifty and Bank Nifty slipped marginally in the last session, yet broader technical structures stayed constructive. Nifty closed at 26,140.75, down 0.14%, while Bank Nifty ended at 59,990.85, lower by 0.21%. The India VIX stayed subdued, pointing to calm short-term expectations and limited price swings. Charts signalled hesitation rather than trend reversal, keeping traders focused on key support and resistance levels.

The Nifty daily candle formed a doji after the recent sharp climb, indicating indecision near record territory. Bank Nifty, which had rallied strongly in prior sessions, saw an intraday pullback from higher levels. Despite the cooling, both indices continued to trade above important moving averages, which generally confirms ongoing positive bias for medium-term market participants.

Explaining the Nifty structure, Om Mehra of SAMCO Securities highlighted support from short-term indicators. "The index holds above the rising trendline, with the 20-day moving average providing near-term support. The RSI remains stable in the 50-52 zone following the recent rally. The MACD remains positive, with momentum skewed modestly higher," said Om Mehra, Technical Research Analyst, SAMCO Securities.

Mehra also outlined the crucial zones for traders tracking Nifty levels. "The support is placed in the 26,050-26,000 zone, aligning with the rising trendline and short-term averages. Holding above this band reinforces short-term stability. On the upside, 26,240-26,300 remains the immediate resistance area. As long as the index continues to respect the 25,980-26,000 support band linked to rising short-term averages, the prevailing bullish trend remains intact," he added.

For Bank Nifty, Mehra pointed to a different candlestick pattern on the daily frame. "On the daily chart, the index formed a hammer candle. The broader trend remains intact, with the index continuing to trade above all key moving averages, which are gradually sloping higher. The RSI on the daily timeframe remains placed near the 62-63 zone. The MACD remains in positive territory, with the rising histogram showing strength," Om Mehra added.

The analyst also assessed the shorter-term setup using intraday charts. "On the hourly chart, Nifty Bank has retraced and is now hovering near the 59,800-59,750 zone. This area coincides with the 38.2% Fibonacci retracement. The next support remains around the 50% retracement placed at 59,600, which was the earlier resistance and has now turned into support. As long as the index sustains above the 59,700-59,800 zone, the near-term tone remains steady. A sustained move above 60,150-60,200 would be required to regain momentum towards the recent highs," the analyst further stated.

Nifty Outlook Today and Bank Nifty Outlook Today linked stock ideas

Alongside the constructive index outlook, traders also tracked selective stock setups. On Thursday, January 8, technical analyst Riyank Arora of Mehta Equities Ltd. suggested fresh long positions in DMart and Kalyan Jewellers. Arora’s recommendations were based on the view that Nifty still trades above the 20-day exponential moving average, which aligns with a positive overall bias.

DMart was highlighted as showing renewed buying interest after reclaiming important moving averages. The price built a base around ₹3,700, signalling accumulation during declines. Momentum oscillators have started to turn higher, hinting at a possible trend reversal. Arora noted that a sustained move beyond ₹3,880 could lead the stock towards ₹3,980 and ₹4,100, while maintaining a stop-loss at ₹3,700.

Kalyan Jewellers, according to Arora, continued to trade with a constructive bias after a phase of healthy consolidation. The share price stayed above its breakout region, suggesting resilience in the underlying trend. The RSI remained supportive and indicated scope for further upside. A break above ₹525 could open targets of ₹545 and ₹570, with a recommended stop-loss set at ₹500 for risk management.

Stock	View	CMP (₹)	Stop-loss (₹)	Target 1 (₹)	Target 2 (₹)
DMart	Buy	3,841.60	3,700	3,980	4,100
Kalyan Jewellers	Buy	520.75	500	545	570

Nifty Outlook Today and Bank Nifty Outlook Today risk notice

The India VIX’s low reading suggested steady near-term sentiment, yet index levels remained close to resistance bands. This combination kept traders attentive to support zones mentioned by analysts, especially 25,980-26,000 for Nifty and 59,600-59,700 for Bank Nifty. Breaks below these pockets could change the tone, while sustained trading above them would support existing bullish structures.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred to as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.