NIFTY Index Chart Analysis

The uncertainty around peace talks between the U.S. and Iran, which had kept the Nifty50 confined to a narrow trading range, eased after reports suggested that a deal could be finalised soon. The development lifted global risk appetite, with equities gaining ground while the dollar and crude oil prices softened. Brent crude slipped to around USD 95 per barrel amid hopes of a potential ceasefire and restoration of flows through the Strait of Hormuz. However, markets will continue to closely track whether the deal is formally concluded.[EasyDNNnews:PaidContentStart]

After moving within a nearly 600-point band between 23,262 and 23,860 over the past couple of weeks, the Nifty50 finally broke out of its range on Monday. The index posted its sharpest single-day rally in over a month, gaining 1.32 per cent. The India VIX also declined by over 6 per cent, reflecting a drop in market fear.

The session began on a firm note, but the index moved in a narrow and dull range for most of the day. Fresh buying emerged in the final hour, helping the Nifty close near the day’s high and above the key psychological level of 24,000. This was the first close above 24,000 since May 8, 2026.

Technically, Monday’s move formed a sizeable bullish candle, with the opening upside gap remaining unfilled. The index also registered a gap-up breakout from its recent consolidation range and closed above the 20-DMA for the first time since the early-May breakdown. Since the gap appeared after a prolonged consolidation and was followed by a close above the short-term moving average, it carries the characteristics of a breakaway gap. However, confirmation will depend on whether the index sustains above the breakout zone and avoids filling the gap in the coming sessions.

Importantly, the Nifty has also reclaimed its 50-DMA, adding further strength to the price structure. The recent consolidation range stood between 23,262 and 23,860, giving it a width of nearly 598 points. With the index breaking above the upper end of this range, the measured move target comes near 24,458. Therefore, the breakout target can be placed around 24,450– 24,460, which also lies close to the swing high of May 7. On the downside, the 23,850–23,900 zone should now act as the immediate support area. Below this, the next important support levels are placed near 23,450 and 23,262.

However, the index may first face resistance around the May 11 gap-down zone, which has been partially filled between 23,997 and 24,127. This zone could act as an intermediate supply area before the Nifty attempts to move towards the measured target. A sustained move above this gap zone would further strengthen the case for an upside move towards 24,450–24,460.

Momentum indicators have also started supporting the breakout. The daily MACD has generated a fresh bullish signal, while the 14-period RSI has moved above the 54 mark.

On the hourly chart, the RSI has crossed above 60 for the first time since May 7, 2026, indicating an improvement in short-term momentum. The breakout from the 23,262–23,860 trading range, supported by a strong bullish candle and the reclaiming of both the 20-DMA and 50-DMA, is a positive development for the index. However, follow-up buying will be crucial. If the index fails to sustain above the breakout zone, the move could become vulnerable. For the coming fortnight, traders may continue to follow a buy-on-dips approach as long as the Nifty holds above 23,860. At the same time, a selective and stock-specific approach remains important, as the broader market still needs confirmation from sustained buying momentum.

STOCK RECOMMENDATIONS
MAX FINANCIAL SERVICES ........................ BUY .................... CMP ₹1,727.75
BSE Code : 500271
Target 1 .... ₹1,800 
Target 2 ..... ₹1,840 
Stoploss....₹1,635 (CLS)

Max Financial Services Limited (MFSL) is part of the Max Group. Focused on Life Insurance, MFSL owns and actively manages an ~81 per cent majority stake in Axis Max Life. Max Financial Services witnessed a sharp correction of nearly 24 per cent from its February high. After this decline, the stock attempted a recovery from its April low, but repeatedly faced resistance near the 61.8 per cent Fibonacci retracement level of the entire fall from the February high to the April low. As the stock failed to move decisively above this retracement zone, it entered a consolidation phase. During this period, it found support around ₹1,560–1,566, while resistance was placed near ₹1,719–1,722. On Monday, the stock broke out of this consolidation range, as marked on the chart, and also moved above the crucial 61.8 per cent retracement level. This suggests that buying interest has improved after more than a month of sideways movement. The stock is now trading above all key moving averages, which supports the positive price structure. The 14-period daily RSI has moved above 60 and has also crossed its previous swing high, indicating strengthening momentum. Meanwhile, the MACD has witnessed a bullish crossover, further adding confirmation to the breakout setup. In short, Max Financial Services has registered a breakout from a one-month consolidation range. Going ahead, if the stock manages to sustain above ₹1,730, it may test ₹1,800, followed by ₹1,840 on the upside. A stop loss can be placed near ₹1,635.

360 ONE WAM ................................... BUY .......................... CMP ₹1,141.85
BSE Code : 542772
Target 1 ...... ₹1,222
Target 2 ..... ₹1,255 
Stoploss.....₹1,070 (CLS)

3 60 ONE WAM is one of India’s leading wealth and asset management companies, with assets under management of nearly USD 74 billion. Its wealth management arm, 360 ONE Wealth, caters to ultra-high-net-worth and high-net-worth families, helping them manage, grow and preserve wealth. A key part of its offering is legacy planning, which supports smooth intergenerational wealth transfer. On the asset management side, 360 ONE Asset provides investment solutions to global and domestic clients looking to participate in Indian markets. Its platform spans public equities, private equity, private credit, renewable energy and real assets, backed by experienced investment teams across each asset class. From a technical standpoint, the stock is showing encouraging signs. It is nearing a breakout from a triangular pattern and also resembles a Volatility Contraction Pattern. The price structure also shows traits of an inverted head and shoulders formation, though it is not a textbook setup. Importantly, the stock is trading above all key moving averages, indicating strength in the underlying trend. Momentum indicators are also supportive. The relative strength line has been improving, suggesting better performance compared to the broader market. The daily MACD is moving higher and remains above its nine-period average, confirming a positive bias. Meanwhile, the 14-period daily RSI has moved above the 60 mark, which signals strengthening momentum. Considering the company’s strong positioning in the wealth and asset management space, along with improving technical structure, we recommend buying the stock with a stop loss of ₹1,070. The upside targets are placed at ₹1,222, followed by ₹1,255.

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