Mumbai: A strong bullish candle shaped as an Inside Bar pattern emerged on the charts of both Nifty and Bank Nifty this week, signalling a return of buying interest from lower levels and reflecting the market’s underlying strength, a new report said on Sunday.

The pattern, often seen as a sign of consolidation followed by potential breakout, suggests that investor sentiment remains optimistic amid supportive technical indicators and favourable market structure, according to Choice Broking.

The Nifty index ended the week on a strong note, closing at 25,112.40 with a weekly gain of 1.59 per cent. The index maintained its position above the crucial psychological level of 25,000, pointing to a sideways-to-bullish momentum in the near term.

The price action confirms sustained buying on dips, with traders showing confidence in defending key support zones, the report said. Technically, Nifty remains well-positioned above all its major Exponential Moving Averages (EMAs) -- the 20-week, 50-week, and 200-week -- highlighting a strong bullish undertone.

The Relative Strength Index (RSI) has also shown upward movement, currently standing at 60.81, which indicates strengthening momentum and potential for further gains, according to the brokerage firm. “As long as the index holds above the 25,000 level, the bias is expected to remain positive, with upside targets in the range of 25,200 to 25,300,” the firm stated.