Five Sessions in a Row: Nifty’s Tight Range Keeps Traders Guessing

Indian equities continued their range-bound streak on Tuesday, as the Nifty 50 index once again failed to break free from its consolidation zone. For the fifth consecutive session, traders were left waiting for a decisive breakout, with intraday moves staying confined within established boundaries.

Muted Session Despite Gap-Up Start

The day began on a positive note with a strong gap-up opening, but the momentum quickly fizzled out as the index hit stiff resistance in the 24,700–24,800 zone. This supply area has consistently capped upside attempts over the past few sessions.

By the end of the day, the Nifty closed 131.95 points higher at 24,619.35, but without delivering any meaningful directional cues. The broader consolidation phase continues to create volatile yet trendless intraday swings, a clear reflection of the tug-of-war between bulls and bears.

Unless the index decisively breaches 24,800 on the upside or 24,300 on the downside, traders may have to brace for continued choppy moves.

Technical View – Key Levels to Watch

The technical setup shows repeated false breakouts trapping both long and short positions. The Nifty is currently locked in the 24,700–24,300 corridor, with these boundaries acting as crucial pivot points for the next major move.

• Resistance Zone: 24,700–24,800 (also near the 10-DEMA & 20-DEMA cluster)
  
  
• Support Zone: 24,500 immediate, followed by 24,320 demand area
  
  
• Breakout Trigger: Sustained close above 24,750 could spark short covering
  
  
• Breakdown Trigger: Breach below 24,500 may open the gates for a slide toward 24,320
  
  
• Momentum Indicator: Daily RSI around 40, offering no clear reversal signs
  
  

The sideways bias remains intact, making range-bound trading strategies the preferred choice for short-term participants.

Derivatives Snapshot – Cautious Optimism

The F&O data signals a cautiously optimistic tone:

• Call Writing: Heavy at 25,000 strike with open interest of 1.64 crore contracts – strong overhead resistance
  
  
• Put Writing: Highest at 24,600 strike with 1.68 crore contracts – immediate support
  
  
• Put-Call Ratio (PCR): Jumped from 0.65 to 1.09, showing growing confidence among put writers
  
  
• Position Shifts: Put writers are moving to higher strikes, but call writers remain hesitant to shift up, reflecting guarded sentiment
  
  

Volatility Check – Calm Before the Breakout?

India VIX slipped 0.76% to 12.14, suggesting that the market is pricing in continued consolidation rather than a sharp correction. The subdued volatility reflects caution but not panic, even amid global uncertainties.

Market Outlook – Wait for the Trigger

The Nifty’s tight range between 24,700–24,340 is reinforced by heavy option writing at at-the-money strikes. This signals that traders are betting on a continuation of consolidation until a breakout forces them to unwind positions.

For now:

• Trading Style: Range trading strategies such as selling strangles/straddles may work best.
  
  
• Breakout Watch: A move beyond 24,800 could trigger momentum buying.
  
  
• Breakdown Risk: A fall below 24,300 could lead to increased volatility and profit booking.
  
  

Until then, the status quo remains — the market is moving, but not going anywhere fast.