Indecision Candles Signal Consolidation as Nifty Clings to 25,100 Support

The Nifty index ended Thursday’s weekly expiry session on a cautious note, extending its losing run for the third consecutive day. Despite intraday volatility, the index failed to reclaim higher ground, consistently closing below the previous day’s high — a sign that caution continues to dominate market sentiment.

The benchmark is now hovering around the 25,100–25,000 support zone, which aligns with the 0.382 Fibonacci retracement of its ongoing bullish leg. A breakdown below this area could challenge the prevailing uptrend, though the 10–20 DEMA cluster continues to act as a critical cushion.

Technical Overview

• Close: 25,169.50 (-32.85 points / -0.13%)
  
  
• Chart Pattern: Two consecutive indecision candles point toward sideways consolidation.
  
  
• Support Levels: 25,100–25,000 (psychological + retracement zone), followed by 24,900.
  
  
• Resistance Levels: 25,250 immediate; next resistance at 25,300.
  
  
• Momentum:
  
  
  • RSI: Holding above 50, suggesting neutral momentum — bears not fully in control.
    
    
  • Candles: Multiple lower closes indicate sellers gradually gaining ground.
    
    

 Key Observation: Unless the index reclaims 25,250 or posts a close above the prior day’s high, sellers are likely to keep the upper hand.

Derivatives Snapshot

• Call Writing Dominates: Fresh OI of 95.97 lakh contracts at the 25,500 strike has cemented it as a formidable resistance ceiling.
  
  
• Put Support: Heavy put OI of 83.57 lakh contracts at 25,000, reaffirming it as the immediate support zone.
  
  
• PCR (Put-Call Ratio): Improved to 0.86 from 0.57, but bias remains tilted toward sellers.
  
  
• Bias: Range-bound move expected, with cautious undertone.
  
  

Volatility Check

• India VIX: Rose 0.64% to 10.62, reflecting slight unease due to global cues.
  
  
• Despite the uptick, the fear gauge remains near historic lows, implying traders are not aggressively hedging, even as intraday swings persist.
  
  

Market Outlook

Nifty’s broader uptrend has paused, with four straight sessions of lower closes and back-to-back indecisive candles on the daily chart. The 25,100 support zone has become critical to defend if bulls are to sustain momentum.

• Bullish Scenario: Holding above 25,100 could keep the structure range-bound, with potential retests of 25,250–25,300 on short-covering rallies.
  
  
• Bearish Scenario: A decisive close below 25,100 could drag the index toward 24,900, tilting the bias sideways-to-bearish in the near term.
  
  

 Bottom Line: The market is in a wait-and-watch phase. Bulls must defend 25,100 to maintain control, while sellers are expected to dominate below this zone.