Nifty Stays Firm Above 25,000; Dips Continue to Attract Buyers

The Nifty index ended Monday with mild profit-booking, snapping its winning streak but defending the psychological 25,000 mark with resilience. The consistent formation of higher lows signals the absence of meaningful bearish pressure, keeping the broader undertone constructive.

On the daily chart, the index traded within the previous day’s range and continues to hover near its prior swing high resistance. With prices stretched away from the 10-DEMA, a brief time-wise consolidation looks likely. However, such corrective phases may offer fresh opportunities for accumulation. Meanwhile, RSI remains steady around the bullish 60 zone, reflecting gradual momentum buildup.

The index slipped 44.80 points to close at 25,069.20. The 24,900–25,000 band has now transitioned into a strong demand base, while immediate hurdles are seen at 25,150 and 25,200. As long as this support cluster holds firm, the buy-on-dips strategy remains favorable.

Derivatives Snapshot

• Heavy open interest (OI) addition of 2.03 crore contracts at the 25,100 strike confirms it as a firm resistance ceiling.
  
  
• The 25,000 strike recorded the highest put OI at 2.04 crore contracts, reaffirming its role as a dependable support zone.
  
  
• The Put-Call Ratio (PCR) eased to 1.03 from 1.32, suggesting a bullish undertone but also hinting at potential sideways action near current levels.
  
  
• Fresh put writing highlights limited conviction for a sharp downside, while incremental call writing points to expectations of a range-bound settlement ahead of expiry.
  
  

Volatility Check

India VIX rose 2.72% to 10.39, but volatility levels remain subdued. Such muted readings imply consolidation rather than panic-driven swings, signaling measured optimism even amid choppy intraday trade.

Market Outlook

Nifty is consolidating near key resistance zones with mild profit-booking. With both call and put writers building heavy positions around at-the-money strikes, expiry could likely see range-bound movement between 24,900 and 25,150.

That said, a sustained move above 25,150 could trigger short covering and open the path toward 25,250. Until then, the continuation of higher highs and higher lows keeps the bullish structure intact, and buying on dips remains the preferred approach as long as the 25,000 base is defended.