Nifty Pauses Near Record Highs; 26,300 Remains Key Breakout Level for Next Rally

The Nifty 50 index cooled off after its sharp rally, with controlled profit-booking driven by weak global market cues. Despite temporary pressure, the index held firmly above the psychological 26,000 support level, signaling that buyers remain active and dominant. After a spectacular one-way surge over the past week, a mild near-term corrective phase cannot be ruled out.

On Friday, Nifty slipped 124 points to close at 26,068.15. Even with a gap-down opening, the index reclaimed the 26,000 zone, showcasing strong underlying resilience. The broader structure continues to maintain higher highs and higher lows, indicating that the uptrend remains structurally intact as long as the index stays above the immediate support zone.

Technical Outlook: 26,300 is the Gateway for Renewed Upside

Nifty has created a temporary peak near 26,246, and a decisive breakout above 26,250–26,300 will be necessary to reignite bullish momentum. The index continues to trade above the 10-day and 20-day EMA, which may act as dependable support during pullbacks.

Key Levels to Watch

As long as Nifty sustains above 25,900, the long-term bullish narrative remains intact. Until one of these boundaries breaks decisively, the market is likely to consolidate in a tight range.

Momentum indicators support the bullish structure 14-day RSI remains above 60, highlighting sustained positive momentum and trend strength.

Derivatives Snapshot: Market Set for Range-Bound Action

The derivatives setup indicates caution with heavy positioning on both sides:

• Strong call writing at the 26,200 and 26,300 strike levels
  
  
• Robust put writing around the 26,000 level
  
  
• Open Interest (OI) buildup:
  
  
  • 26,200 CE: ~ 1.34 crore contracts
    
    
  • 26,000 PE: ~ 1.22 crore contracts
    
    

This positioning suggests a defined trading zone between 26,000 and 26,300 for the near term.

The Put-Call Ratio (PCR) has dropped from 1.50 to 0.99, indicating cooling sentiment, but it remains in a zone supportive of stability rather than panic.

Market Outlook

Nifty saw profit-taking amid global weakness, but its ability to hold above 26,000 keeps the underlying uptrend intact. With the index stretched above short-term averages, a healthy pullback may occur.

In the coming sessions, price action within the 26,300–26,000 band is expected to dominate.

• Breakout above 26,300 → could trigger a fresh rally
  
  
• Break below 25,900 → may invite near-term downside pressure
  
  

Until then, traders may adopt a range-bound strategy with a focus on key levels, momentum indicators, and derivatives flows.