The Nifty 50 strengthened its technical setup on Monday after reclaiming its 200-day exponential moving average (EMA) for the first time since February 27, signalling improving market momentum.
The benchmark index climbed above the 24,450 mark during intraday trade before ending the session at 24,430.35, extending its winning streak to four consecutive sessions.
The rally was largely powered by heavyweight stocks HDFC Bank and Reliance Industries, which together contributed nearly 118 points to the Nifty’s gains.
Technical Indicators Signal Improving Momentum
Monday’s price action further reinforced the positive short-term outlook for the benchmark index.
The Nifty formed a bullish candlestick pattern with both a higher high and a higher low while also closing above the previous session’s high—an indication of sustained buying interest.
A decline in open interest suggests that much of the rally was driven by short covering rather than aggressive fresh long positions.
Another encouraging signal came from the moving averages, with the 20-day moving average crossing above the 50-day moving average, a development generally viewed as a bullish crossover that supports a positive near-term trend.
Resistance Zone Could Trigger Consolidation
Despite the improving technical picture, the Nifty is now approaching an important resistance zone between 24,482 and 24,520.
After rallying more than 600 points between its June 30 low and July 6 high, analysts believe the market could witness a phase of consolidation or sideways movement before attempting another upward breakout.
Another historical pattern also points towards caution.
So far in 2026, the Nifty has rarely managed more than four or five consecutive sessions of gains. Monday marked the index’s fourth straight positive close, increasing the likelihood of profit booking or consolidation in the near term.
Key Support Levels to Watch
On the downside, immediate support is placed near 24,300.
Below that, the opening gap created on July 3 between 24,195 and 24,252 will serve as a crucial support zone.
Analysts believe the broader bullish outlook remains intact as long as the index holds above this range.
Momentum indicators also continue to support the ongoing uptrend.
The 14-day Relative Strength Index (RSI) has climbed to its highest level of 2026, reflecting strengthening momentum, while the Moving Average Convergence Divergence (MACD) indicator continues to remain in positive territory.
Even so, the combination of a strong recent rally and a major resistance area suggests that a temporary pause cannot be ruled out.
Gabriel India Shows Signs of a Fresh Breakout
Among individual stocks, Gabriel India continues to attract attention after displaying encouraging technical signals.
The stock had surged more than 30% between its June 9 low and June 29 high before entering a consolidation phase.
During Monday’s session, Gabriel India moved closer to breaking out of that consolidation range, with the move backed by higher-than-average trading volumes.
According to the technical analysis, the stock needs to sustain above the Rs 1,285–Rs 1,290 zone to maintain its upward momentum.
Gabriel India is currently trading above all its key moving averages, while the 14-day RSI has entered what analysts describe as a “super bullish” zone.
In addition, the Average Directional Index (ADX) stands at 34, indicating a strengthening trend, while the Positive Directional Movement Index (+DMI) has resumed its upward trajectory after finding support near the 25 mark.
If the stock continues to hold above the Rs 1,285–Rs 1,290 range, analysts expect it to target Rs 1,350–Rs 1,380 in the near term. A stop loss at Rs 1,212 has been recommended to manage downside risk.
Disclaimer
The technical views and trading levels mentioned above are based on market analysis and should not be considered investment advice. Investors are advised to conduct their own research or consult a qualified financial advisor before making investment decisions. Investments in the stock market are subject to market risks.