Markets rebound from lows; Nifty eyes 26,000–26,100, Bank Nifty seen consolidating: Sneha Seth, Angel One

Benchmark indices staged a sharp recovery from intraday lows on Wednesday, improving near-term sentiment, with the Nifty likely to attempt a move above the key 26,000 mark in the coming sessions, according to Sneha Seth, Derivative Analyst at Angel One.

Speaking to ET Now, Seth said the recovery has improved the technical setup for the Nifty, which managed to break above a falling trend-line resistance near 25,900 on the daily charts. “That breakout is significant. Going ahead, 26,000 is the immediate level to watch. While a decisive move above it may not happen immediately, positionally the index has the potential to extend towards 26,000–26,100,” she said.

Seth added that options activity suggests some near-term consolidation, but the broader setup favours further recovery rather than a fresh breakdown. “Even if the market pauses around 26,000 in the short term, the structure supports higher levels over the next few sessions,” she noted.

Bank Nifty in consolidation mode

On the banking index, Seth said Bank Nifty continues to trade in a consolidation phase after taking consistent support around the 58,600–58,700 zone. “The index has not seen a sharp bounce yet, but the overall chart structure is not weak. As long as Bank Nifty holds above 58,600, long positions can be maintained,” she said.

On the upside, she identified 59,200 as the first resistance level, followed by a stronger hurdle near 59,400. “A range-bound move is likely in the near term for Bank Nifty, unlike the Nifty, which appears better placed for a recovery,” Seth added.

Outlook
According to Seth, the divergence between the broader market and banking stocks suggests selective strength rather than a broad-based rally at this stage. “Traders should stay stock-specific and index-specific, with a positive bias on the Nifty as long as it sustains above recent breakout levels,” she said.

The market’s ability to hold gains above key technical supports will now be crucial in determining whether the recovery extends further or gives way to fresh consolidation in the coming sessions.