Nifty: Base Formation Underway
Om Mehra,
Technical Research Analyst,
SAMCO Securities
Mumbai, April 6, 2026: Nifty ended the session at 22,968.25, gaining 1.12%, extending the rebound from recent lows and holding firm through the session. The move reflects the continuation of the relief rally, though the recovery remains within a broader weak setup.
Nifty: Trend Reversal Awaits Confirmation
On the daily chart, Nifty has formed a bullish candle and is now positioned above the 10-day moving average. However, the index remains below the higher moving average cluster, indicating that the broader trend has not yet turned supportive. The rebound has emerged from near the lower Bollinger Band, with prices now attempting to stabilise toward the middle band.
The RSI has moved up near 41, recovering from lower levels, while the MACD histogram is contracting, indicating easing downside pressure. The MACD line, however, remains in negative territory.
On the hourly chart, a positive divergence is visible across indicators. The short-term move has improved, but still requires follow-through.
India VIX remains elevated at 25.46, indicating that volatility remains structurally high, with uncertainty yet to recede.
The immediate resistance is placed around 23,100–23,150, which coincides with the 23.6% Fibonacci retracement, followed by 23,440. On the downside, 22,600 remains a key support level, and a move below this level would negate the current setup.
The short-term view remains cautiously bullish, provided the index sustains above 22,650.
Nifty Bank ended the session at 52,609.10, gaining 2.06%, with a morning star formation visible on the daily chart.
The rebound gained traction, led by strength across both private and PSU banking stocks
On the daily chart, the index has rebounded strongly after holding the 51,800 zone. The recovery has pushed the index toward the 23.6% Fibonacci retracement level near 52,720, while the broader trend remains under check.
The index continues to trade below its key short-term moving averages, indicating that the recovery is still in its early phase.
The RSI has moved higher toward 40, suggesting improving momentum, while the MACD histogram is contracting and nearing a positive crossover.
On the hourly chart, a double bottom formation is visible near the 50,500 zone, indicating gradual improvement in the short term.
The resistance is placed around 53,100–53,400, and a sustained move above this band on a closing basis would be required to extend the recovery.
On the downside, 51,800 remains a key support zone; a move below this level may keep the index under pressure.
The current setup reflects a short-term recovery within a broader corrective phase, with improvement visible, though confirmation still depends on reclaiming higher resistance levels.
