What’s Next for Nifty & Bank Nifty This Week?

Nifty 50 started December on a strong note and hit a new record high on the first day. After that, the index saw a small and healthy correction. This dip stopped exactly near the 20-day EMA, which also matches the lower side of its rising channel — a strong support area. From here, Nifty bounced back well and closed the week near 26,200, almost unchanged. Banking and IT stocks continued to lead the market this week. Their strength helped Nifty stay stable even though the broader market remained weak. The Nifty Smallcap 100 is still below its 200-day EMA, showing that the overall market is still cautious. Looking ahead, the chart setup remains positive. As long as Nifty stays above the 25,950–25,900 support zone, it can move higher toward 26,350 and then 26,500. Any dips are likely to be small and short-lived. Bank Nifty also made a new record high recently and then saw a mild pullback. This fall took support at the 20-day EMA, showing the trend is still strong. After the RBI’s 25-bps rate cut, Bank Nifty bounced sharply, confirming strong momentum. On the weekly chart, Bank Nifty has formed a small candle with a lower shadow, which means buyers stepped in on declines. The RSI also bounced above its 9-day average, showing renewed strength. Overall, Bank Nifty looks ready to move higher toward 60,400 and possibly 61,000 if buying continues. Strong support is placed at 59,200–59,100, which should hold during any small dips.