Nifty Edges Above 26,000 With Steady Bullish Momentum; Breakout Above 26,100 in Focus

Nifty closed the session at 26,013.45, gaining 0.40%, and extending its steady upward trajectory as the index moved closer to the crucial 26,100 breakout zone. After opening on a firm note, the index maintained a gradual upward drift and formed a bullish candle, indicating persistent buying interest across sectors. Nifty also continues to trade comfortably above the middle Bollinger Band, signalling sustained strength in the short- to medium-term trend.

Nifty Technical Overview: Higher Highs Continue to Support the Uptrend

Nifty remains well above the 10-EMA near 25,800, which has been acting as a strong dynamic support over the past few sessions. The broader market structure continues to form higher highs and higher lows, reinforcing the bullish sentiment and suggesting that the index is rebuilding momentum ahead of a potential breakout.

Momentum indicators further support this view:

• RSI has inched up to 65, reflecting improving strength.
  
  
• MACD is gradually converging toward the signal line, hinting at a possible bullish crossover if momentum sustains.
  
  

As long as Nifty stays above the 25,850–25,780 support zone, the bias remains firmly positive.

Key Levels to Watch: Resistance at 26,050–26,100

On the upside, Nifty is trading just below a critical resistance band at 26,050–26,100.
A decisive close above this zone could accelerate momentum and push the index toward its all-time high of 26,277.35.

Traders should watch for:

• Short covering if Nifty sustains above 26,080
  
  
• Fresh put writing around 25,900/25,950
  These signals may confirm a strong continuation of the uptrend.
  
  

Derivatives Snapshot: Sentiment Remains Positive

Derivatives positioning continues to support the bullish bias:

• The 26,000 strike holds the highest Call OI, marking a key supply zone.
  
  
• The 25,900 strike hosts the highest Put OI, acting as strong immediate support.
  
  
• The Put–Call Ratio (PCR) has jumped to 1.08 from 0.75, indicating growing optimism and reduced bearish exposure.
  
  

A rising PCR typically reflects increasing confidence among traders, aligning with the broader bullish narrative.

Market Volatility: Stable and Favouring Bulls

India VIX settled at 11.79, and a move below 11.50 would further support the bullish trend.
Low volatility generally strengthens a trending market and helps sustain upward momentum.

Market Outlook: Bias Remains Positive

The overall setup remains constructive, with Nifty:

• Sustaining above the key moving averages
  
  
• Maintaining a higher-high structure
  
  
• Supported by bullish derivatives data
  
  
• Backed by stable volatility
  
  

As long as Nifty holds above 25,850, the trend favours the bulls. A strong breakout above 26,100 could trigger a rally toward 26,277 and potentially new highs in the coming sessions.