Trade Setup June 26: Nifty eyes 25,700 after hitting 25,245; breaches key resistance
Nifty hits a 2025 high at 25,245, breaching key resistance. Experts see upside towards 25,700. Midcaps, smallcaps extend gains; sectoral momentum strong.
The Nifty 50 rallied 200 points on Wednesday to close at 25,245—its highest closing level so far in 2025—marking a decisive breakout above the crucial resistance of 25,200. The session began with a 106-point gap-up and sustained upward momentum throughout the day, ending at the day’s high.
Broad-based buying lifted more than 40 Nifty stocks into the green. Titan, Mahindra & Mahindra, and Grasim were among the top gainers. Sectorally, Media, IT, Consumer Durables, and Auto led the charge, while only the Nifty Private Bank index ended in the red.
The bullish sentiment also extended to broader markets. The Nifty Midcap 100 gained 0.44% and the Smallcap 100 advanced 1.49%, marking the fourth straight day of gains for both indices.
Despite foreign institutional investors (FIIs) remaining net sellers in the cash market, domestic institutional investors (DIIs) continued their buying spree, cushioning the rally.
Technical Viewpoints:
Nagaraj Shetti of HDFC Securities said the breakout from the 24,500–25,200 range signals renewed bullish strength, projecting an upside potential towards 25,600–25,700. He pegged immediate support at 25,000.
LKP Securities' Rupak De echoed similar sentiment, citing strengthening market confidence, particularly after the recent Israel-Iran ceasefire. He identified resistance at 25,350 and projected a possible move to 25,750 if this level is breached. Key support lies in the 24,820–25,000 zone.
According to Om Mehra of SAMCO Securities, Nifty's close above its short-term resistance band at 25,200 confirms a bullish breakout, following multiple failed attempts in recent weeks.
Nandish Shah from HDFC Securities noted that the index has exited a six-week consolidation phase. While support now shifts to 25,000, a fresh resistance could emerge near 25,500.
Bank Nifty Outlook:
The Nifty Bank index inched up 0.28% to close at 56,621.15, trading within a narrow band but comfortably above its 9-day and 20-day EMAs. Mehra pointed out that near-term support lies at 56,200, with the immediate hurdle at 57,000, recommending a buy-on-dips approach.
With momentum building and technical indicators pointing north, traders will closely watch for a breakout above 25,350 on June 26 to confirm the next leg toward 25,700.
