TECHNICAL OUTLOOK

On the weekly chart, Nifty exhibits a strong recovery from a prior downtrend. Currently, the index is trending within a rising channel, indicating sustained upward momentum.

- 

The green 50-day Simple Moving Average (SMA) has acted as dynamic support and is sloping upwards, confirming the short- to medium-term trend strength. Meanwhile, the blue 200-day SMA remains well below the price action, reinforcing the long-term bullish structure.

Furthermore, the momentum indicator RSI (14) traded higher and is approaching the overbought zone, suggesting strong buying interest. However, it also calls for carefulness as the index nears short-term exhaustion.

On the upside, the resistance zone lies at 25,340. A significant breakout above 25,340 on a closing basis could signal a continuation of the rally, potentially leading towards the 25,900-26,200 mark.

On the downside, major support is placed at 24,540 and 24,270, aligning with previous consolidation zones. A move below these levels may trigger a short-term decline towards 23,900.