Nifty Eyes Fresh Rally as Consolidation Near All-Time High Signals Renewed Strength

The Nifty ended the November series on a distinctly positive note, registering a new lifetime high of 26,310 before witnessing a mild round of profit-booking at higher levels. Despite this brief pause, the index maintained its strong structural trend of higher highs and higher lows, reinforcing the durability of the prevailing uptrend.

On Friday, Nifty slipped marginally by 12.60 points to close at 26,202.95, staying well within its recent consolidation band. This narrow-range, time-wise correction near the all-time high reflects healthy digestion of gains, rather than any meaningful weakness. As long as buyers continue to defend these elevated levels, the index appears poised for another leg of upside.

Technical Outlook: Consolidation Supports Further Strength

Nifty is currently undergoing a healthy retracement after its sharp, one-sided rally. A decisive move above the 26,330 zone, the immediate supply area aligned with the record high, could trigger fresh short-covering and propel the index toward 26,500.

On the downside, the 10-DEMA around 26,000 continues to offer a solid support base and remains a strong buy-on-dips zone. As long as the index sustains above this demand pocket, the broader market tone is expected to stay firmly bullish.

Key Technical Levels

• Immediate Resistance: 26,330
  
  
• Upper Target: 26,500
  
  
• Support Zone: 26,000 (10-DEMA / buy-on-dips region)
  
  

Momentum indicators also echo the bullish structure. The 14-day RSI comfortably trades above 60, signalling persistent strength and supporting the case for further upside.

Derivatives Snapshot: Bias Firmly Positive

The derivatives setup continues to favour the bulls. Put writers are aggressively adding positions at lower and at-the-money strikes, while call writers are unwinding and shifting to higher levels, a clear indication of rising confidence and expectations of further gains.

Key OI Highlights

• 26,500 Call Strike: ~1.38 crore contracts (major resistance zone)
  
  
• 26,000 Put Strike: ~1.74 crore contracts (strong support base)
  
  
• PCR: Steady near 1.12, reflecting healthy bullish sentiment
  
  

The robust put OI buildup at 26,000 reinforces this level as the primary support, while the concentration of calls at 26,500 marks it as the major upside hurdle.

Market Outlook: Break Above 26,350 Could Fuel Fresh Rally

With Nifty ending November at fresh record highs and consolidating constructively near the top, the setup remains favourable for an upside continuation. Sustained put writing, rising support levels, and an upward shift in call positions reflect strengthening market conviction.

A strong push above 26,350 could trigger incremental short covering and open the way toward 26,500 in the near term. On declines, any retest of 26,000 is likely to attract accumulation, keeping the broader market bias firmly aligned with the bulls.