Nifty Friday Outlook: Can The Rally Continue Or Is Profit Booking Likely?

The Nifty 50 index extended its upward move for the fifth consecutive session on Thursday and closed at its highest level in more than a month. After opening on a positive note, the index traded in a narrow range for most of the session. Buying interest picked up towards the close, helping Nifty move above its previous swing high recorded on May 26, 2026.

The late-session recovery indicates that buyers remain active at higher levels, even after the sharp five-day advance.

Breakout Above a Key Resistance Zone

On the daily chart, Nifty formed a reasonably sized bullish candle with a higher high and higher low. This reflects continued strength in the ongoing uptrend.

The index closed decisively above the crucial 24,090-24,127 zone. This area is significant because it marks the previous swing high of May 26 and coincides with the opening-down gap formed on May 11. The close above this zone confirms a breakout and strengthens the case for further upside in the coming sessions.

Open Interest Supports the Upmove

For the first time this week, open interest increased along with the rise in the index. This suggests that fresh long positions were added during the session rather than the move being driven only by short covering.

However, Nifty has now risen for five consecutive sessions. Some consolidation or profit booking at higher levels would be normal after such a sharp recovery and should not be viewed negatively as long as key supports remain protected.

Momentum Indicators Remain Positive

The technical indicators continue to support the positive trend. The MACD has moved above the zero line, signaling improving bullish momentum. The RSI is holding above the 60 mark, which indicates sustained buying strength.

Bollinger Bands have expanded further, showing an increase in price momentum. Since the index continues to trade within the upper band structure, there remains room for the rally to extend. Nifty has also held above the 61.8% retracement level for the second consecutive session and closed above its 20-week moving average, adding further support to the near-term outlook.

Key Levels to Watch on Friday

The immediate resistance for Nifty is placed at 24,290-24,330. A sustained move above this level could take the index towards 24,482, which is May 07 swing high.

On the downside, immediate support is placed at 24,030. Below this, the next important support lies in the gap zone formed on June 15 between 23,654 and 23,818.

As long as Nifty holds above the previous day's high, the short-term bias is likely to remain positive. A decisive move above 24,279 would be the next key trigger for the index.

Stock to Watch: GMR Airports

GMR Airports has broken out of a 28-week Stage 1 consolidation and closed at a fresh 52-week high. Trading volumes have remained above average over the past four weeks, supporting the breakout. The relative strength line has also moved to a new high, indicating continued outperformance against the broader market.

The broader technical setup remains favourable. Both short-term and long-term moving averages are trending higher, while the moving average ribbon continues to support the ongoing uptrend. The stock is trading 12.40% above its 50-day moving average, while expanding Bollinger Bands indicate strengthening momentum and rising volatility.

Momentum indicators remain positive. The MACD is in bullish territory across multiple timeframes, while the weekly RSI has shifted into a bullish range. The KST indicator and Stochastic RSI are also supportive, and the Elder Impulse System has formed a strong bullish bar.

Overall, the chart structure points to a sustained bullish breakout. A decisive move above Rs 111 could open the way towards Rs 122, followed by Rs 126. A stop loss may be maintained at Rs 102.

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