The Nifty 50 continues to display a weak technical structure as it trades below its 50-day Exponential Moving Average (50-DEMA), a level closely watched by traders for short-term trend direction. The inability to reclaim this moving average is keeping the bias tilted in favour of bears, even as volatility remains subdued.
Nifty Technical Outlook: Bears Retain Control Below 50-DEMA
Technical analysts note that as long as the Nifty stays below the 50-DEMA, selling pressure could persist on rallies. The index may struggle to build sustainable upside unless it decisively moves back above this key resistance zone. Immediate support is seen near recent swing lows, while resistance remains placed around the 50-DEMA region.
Bank Nifty Shows Relative Strength, Defends 58,800
In contrast, the Bank Nifty is showing relative resilience by defending the crucial 58,800 support level. The banking index has managed to absorb selling pressure better than the broader market, supported by selective buying in large private and PSU banks. A sustained hold above 58,800 could help Bank Nifty attempt a recovery, while a breakdown may invite sharper cuts.
India VIX at Fresh Lows: Calm Before Volatility?
The India VIX, often referred to as the market’s fear gauge, fell to a fresh closing low of 9.7, down 1.32 percent, extending its decline for the third consecutive session. While low VIX levels typically indicate investor comfort and stability, they also raise the risk of sudden and sharp market moves if unexpected triggers emerge.
Key Takeaway
The broader setup suggests a cautious market tone. Nifty’s weak structure below the 50-DEMA favours bears in the near term, while Bank Nifty’s ability to hold 58,800 offers some support. With volatility at unusually low levels, traders should remain alert to swift moves driven by global cues or domestic news flow.
Keywords: Nifty technical view, Bank Nifty support levels, India VIX today, stock market technical analysis, Nifty 50 outlook, market volatility India
