The Nifty 50 reclaimed strong upward momentum on Thursday as the index registered a decisive bullish gap, breaking past key resistance levels after four consecutive weeks of consolidation. The sharp move reflects a powerful resurgence in buying interest, supported by a series of higher lows that continue to reinforce the index’s strong and healthy technical structure.
Closing with a gain of 139.50 points at 26,192.15, Nifty delivered a clear breakout, demonstrating that bulls remain firmly in control. With the index now inching closer to its all-time high of 26,270, market sentiment appears solidly constructive, backed by improving price action and favourable structural cues.
Technical Outlook: Strong Structure and Breakout Signals Further Upside
From a technical standpoint, Nifty has convincingly pierced multiple resistance zones and remains well-placed to scale new highs. The index continues to trade above its 10-day and 20-day exponential moving averages (DEMA)—dynamic support zones that have consistently cushioned short-term declines.
Importantly, the psychological mark of 26,000, once a stiff resistance barrier, has now transformed into a strong demand pocket, adding further strength to the ongoing uptrend. As long as Nifty holds above the 25,900–25,850 support corridor, traders are expected to maintain a buy-on-dips strategy, confident in the bullish structure.
On the upside, the next major resistance is located near the 26,270 zone its previous all-time high. A stable close above this level could attract momentum-led buying, potentially setting the stage for a fresh record breakout. Conversely, dips towards 25,850 are likely to see renewed buying traction as long as structural supports remain intact.
Momentum Indicators Reinforce Bullish Strength
Momentum readings continue to validate the positive narrative. The 14-day RSI, currently above 65, reflects strong short-term momentum and underscores the market's dominance by buyers. The index’s consistent pattern of higher highs and higher lows further strengthens confidence in the ongoing uptrend.
For the near term, 26,270 remains the key resistance to watch, while the 25,950–26,000 band is expected to act as a critical pivot zone supporting short-term direction.
Derivatives Snapshot: Strong Put Writing Highlights Firm Bullish Bias
The derivatives landscape mirrors the underlying bullish sentiment. Call writers are shifting to higher strikes, while put writers are building hefty open interest at lower bands, indicating a firmly upward-tilted market setup.
- 26,500 Call strike: ~1.17 crore OI — central resistance ceiling
- 26,000 Put strike: ~1.54 crore OI — strong support base
- PCR jumps to 1.50, up from 1.33 — signalling rising optimism
The sharp rise in PCR indicates heightened bullish sentiment, though it also suggests the market is entering a mildly overheated zone, where short-lived profit-taking cannot be ruled out.
Aggressive put writing and upward rollovers in calls reflect traders' strong conviction that the upside will continue.
Market Outlook: Breakout Holds Firm as Bulls Tighten Grip
Nifty’s bullish gap after four weeks of muted action signals renewed confidence ahead of the monthly expiry, with price action strongly favouring the bulls. The index’s ability to trade consistently above the 10-DEMA highlights accelerating momentum, while the conversion of earlier resistance levels into support further enhances the long-term trend outlook.
With put writers adding substantial positions near current levels and call writers repositioning to higher strikes, the overall trend remains upward-biased. Any corrective dips are likely to be absorbed swiftly.
A clear breakout above 26,300 may open the gates for the next major rally leg, while only a sustained move below 25,800 could introduce short-term weakness.
Until critical supports are violated, traders are expected to maintain a buy-on-decline approach, aligning with the broader bullish trend.
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