Nifty, Bank Nifty Show Bullish Reversal Signs Amidst Cautious Market

• Nifty 50 and Bank Nifty formed bullish reversal-type patterns (inverted hammer) on December 18, despite Nifty's negative bias.
• Nifty 50 successfully defended key support levels including the 50-day EMA and an upward-sloping trendline in the 25,750–25,800 range.
• Key resistance for Nifty is at 26,000 and support at 25,500; for Bank Nifty, resistance is at 59,500 and support at 59,000.
• Momentum indicators (RSI, MACD) remain bearish for both indices, suggesting cautious sentiment despite the reversal patterns.
• India VIX declined to 9.7, favoring bulls, while the Put-Call Ratio rose to 0.83, indicating potential firming of bullish sentiment.

Why It Matters: Nifty and Bank Nifty show bullish reversal patterns, but market momentum remains cautious.