Heavy volatility in Nifty.. 26,000 level likely to be tested again

Last week, the Nifty traded amid sharp volatility. Although it faced strong selling pressure near the 26,200 level, it managed a solid rebound from around 25,700. However, it eventually ended the week with a loss of about 140 points compared to the previous week. For the past eight weeks, the Nifty has been moving in a sideways and volatile range around the 26,000 level. Despite repeated reactions at this level, the index has consistently recovered strongly from lower levels. To sustain the uptrend, stability over the coming week is essential. Given the influence of US markets, a cautious trend is expected this week, and the 26,000 level may be tested once again.

From a bullish perspective, holding above 26,000 is crucial. On the upside, the minor resistance is at 26,160, while the major resistance stands at 26,300. This level is also the recent all-time high, making it a strong hurdle. On the bearish side, the support at 25,800 is critical. A break below this level would indicate short-term weakness. The next major support lies at 25,450.

Bank Nifty moved within a limited range last week and closed at 59,390. To maintain a positive trend, it must sustain above 59,600. The next major resistance is at 60,100, which is also its all-time high. On the downside, support at 58,800 is important, and a breach could lead to further weakness. Given the current uncertainty, clarity in the market may take another week. A breakout above 26,300 would strengthen the uptrend, while a fall below 25,800 could trigger short-term weakness.

As per time indicators, a minor reversal may occur on Wednesday.