V-shaped Rebound Lifts Nifty Above 25,000; Bullish Momentum Intact

Nifty wrapped up its second straight week in the green, staging a sharp V-shaped recovery and extending its winning streak to eight sessions. The index not only crossed but also sustained above the psychological 25,000 mark, turning this level from a stiff resistance into a dependable support. The consistent formation of higher lows underscores the absence of sustained bearish pressure.

On Friday, Nifty added 108.50 points to close at 25,114, trading close to its previous swing-high resistance. While the index remains stretched away from the 10-DEMA, hinting at the possibility of a time-wise consolidation, such dips could act as fresh buying opportunities. The RSI closed above 60 for the first time in nearly two months, signaling strengthening momentum.

Key Technical Levels

• Support Zone: 24,900–25,000 (now a strong demand cluster)
  
  
• Immediate Resistance: 25,150, followed by 25,200
  
  
• As long as 25,000 holds, a buy-on-dips strategy remains favorable.
  
  

Derivatives Snapshot

• Heavy put writing at 25,000 (1.93 crore contracts) reinforced the base.
  
  
• 25,500 strike saw notable call OI buildup of 1.24 crore contracts, marking it as a firm resistance ceiling.
  
  
• PCR rose to 1.32 (from 1.18), highlighting a bullish tilt with scope for sustained momentum.
  
  

Fresh put writing signals limited downside conviction, while incremental call writing at higher OTM strikes reflects early optimism.

Volatility Check

The India VIX slipped 2.29% to 10.12, showing easing volatility. Such subdued levels suggest consolidation rather than panic, aligning with measured optimism in the market.

Market Outlook

The combination of:

• Two consecutive weekly gains
  
  
• A V-shaped rebound above 25,000
  
  
• Strong put additions at money strikes
  
  

paints a constructive picture for Nifty. The rising base near 24,900–25,000 and the ongoing higher-high, higher-low structure reinforce the bullish setup.

That said, with the index stretched from short-term moving averages, minor profit booking or sideways consolidation cannot be ruled out. A sustained move above 25,150 could unleash short covering, opening the path toward 25,250.

Adding to the positive sentiment, FPI futures data shows short unwinding, with the long-short ratio easing from 92% to 88%, signaling early optimism and scope for further recovery.