On the hourly chart, a saucer formation along with a rounding bottom pattern added further strength to the setup.
Om Mehra,
Technical Research Analyst,
SAMCO Securities
Mumbai, 25 May 2026: Nifty surged 1.32% to close at 24,031.70, breaking out of the prolonged consolidation range that had confined the index between 23,300 and 23,870 over the past two weeks.
Derivatives Analysis Report
Nifty Breaks Out of Consolidation, Reclaims 24,000
The daily chart formed a strong bullish candle, closing above both the 20-day SMA placed at 23,880 and the psychological 24,000 level. The breakout is supported by several positive signals. The RSI has moved to 55, crossing above the neutral zone for the first time since the correction began in early May. The MACD line has also turned positive.
On the hourly chart, the breakout is clearly visible, with a higher-high formation as the index moved decisively above the recent range and held above the hourly SMA at 23,820. India VIX declined 6.28% to settle at 16.70, indicating a significant cooling in volatility. USD-INR declined 0.48% to settle at 95.22, with the rupee strengthening from its recent historic lows.
On the downside, the 23,800–23,850 zone now becomes the immediate support. On the upside, the 24,180–24,220 zone remains the immediate resistance. As long as Nifty sustains above 23,950 on a closing basis, the breakout remains valid, and a buy-on-dips approach may be considered for the coming session.
Nifty Bank also made a decisive breakout, gaining 1,238.30 points to close at 55,293.65, up 2.29%. The open and low remained nearly at the same level, indicating sustained buying throughout the session. The index has reclaimed the 20-day and 50-day SMA at 54,564 and closed above the 50% Fibonacci retracement level. On the hourly chart, a saucer formation along with a rounding bottom pattern added further strength to the setup.
The RSI has jumped to 55, crossing above the neutral zone after spending an extended period in the sub-45 range. The MACD line has also turned positive, reflecting improving momentum. Nifty Private Bank gained 2.09% to settle at 26,927.10, while Nifty PSU Bank surged 2.90% to close at 8,238.10, indicating broad-based strength across the banking space.
On the downside, the 54,900–54,600 zone, aligned with the 38.2% Fibonacci retracement, remains the immediate support. On the upside, 55,600, followed by 56,000, remains the next resistance zone.
