Nifty Extends Sideways Phase; Volatility Persists Within Broader Consolidation Band

Nifty continued its lack of direction, extending the ongoing consolidation phase while staying confined to a wider range. Intraday volatility persisted, with sharp two-way swings, although the index managed to recover from its intraday lows. On the daily chart, a hammer-like candlestick formed, reflecting persistent buying interest at lower levels and highlighting a continued range-bound sentiment.

Technical Analysis: Nifty

• On Friday, Nifty posted a modest gain of 6.70 points, closing at 24,741.00. Despite wild fluctuations during the session, the index held above the critical 24,700 level, marking the fifth consecutive session of closing above its previous day’s low. This suggests that sustained bearish momentum has yet to materialize.
  
  
• The broader trend remains neutral, with bulls and bears alternating dominance each session. Nifty continues to trade within a wide consolidation range of 24,500–25,000, and only a breakout beyond this range will trigger meaningful directional momentum.
  
  

Key Levels for Nifty:

• Immediate support: 24,500–24,400
  
  
• Resistance: 24,900–25,000
  
  

Until the upper or lower range is decisively broken, Nifty remains in a sideways trend with volatile swings.

Derivatives Snapshot

The options market mirrored the cautious sentiment, with call writers maintaining dominance over put writers:

• Call writing at the 25,000 strike surged to 1.91 crore contracts, establishing this level as a firm resistance.
  
  
• The 24,500 strike saw the highest put open interest at 1.29 crore contracts, reinforcing it as a critical support zone.
  
  

Fresh call writing near current levels indicates limited conviction for strong upside momentum, while consistent put writing at at-the-money strikes suggests a neutral-to-defensive stance. The Put-Call Ratio (PCR) remained steady at 0.76, signaling continued caution and an increase in bearish positioning.

Volatility Check

• India VIX dipped by 0.07% to 10.78, signaling a slight cooling in volatility. The muted VIX suggests a consolidation phase, with cautious optimism as traders refrain from aggressive hedging despite the index’s lack of direction.
  

Market Outlook

Nifty remains trapped in a sideways trajectory, weighed down by profit booking at higher levels, while buyers continue defending key support zones. The index is locked between the psychological barrier of 25,000 and the solid base of 24,500–24,400.

• A decisive move above 24,900 could unleash significant short covering, potentially paving the way for a stronger rally.
  
  
• Conversely, a breakdown below 24,500 could initiate a fresh leg of bearish continuation.
  
  

For now, the range-bound action is expected to persist, favoring a “range trading” strategy, with 24,400 as the floor and 24,900 as the ceiling.