NIFTY 50 Buy-on-Dips Strategy Prevails as Positive Undertone Sustains

Session Recap

Nifty advanced for the third consecutive session, reinforcing the constructive undertone. After mild early profit booking, the index rebounded sharply from key support levels and witnessed steady buying through the day.

The index settled 93.95 points higher at 25,819.35, maintaining a bullish continuation structure.

Technical View

• Higher-Low Formation: Daily chart continues to show structural strength.
• Accumulation Zone: 25,600–25,500 has strengthened as a solid demand base.
• Above 10 & 20-day EMAs: Signals improving short-term momentum.
• Immediate Resistance: 25,850 — breakout level to watch.
• RSI near 50: Indicates room for upside expansion on confirmation.

A decisive close above 25,850 could trigger fresh short covering and accelerate momentum toward higher levels.

Derivatives Snapshot

Options positioning remains supportive but defines near-term boundaries.

• 26,000 Call OI: ~1.10 crore contracts — key resistance zone
• 25,700 Put OI: ~92.36 lakh contracts — firm near-term support
• Put–Call Ratio (PCR): 1.14 — positive yet balanced sentiment

The elevated call OI at 26,000 suggests supply overhead, while strong put writing near 25,700 reinforces the buy-on-dips bias.

Key Levels to Track

• Immediate Support: 25,700
• Secondary Support: 25,600–25,500
• Breakout Trigger: 25,850
• Upside Target: 26,100 (on sustained breakout)

Strategy & Outlook

The broader strategy continues to favor “Buy on Dips.”

• Sustained trade above 25,850 may open the path toward 26,100.
• As long as 25,700 holds, declines are likely to attract fresh accumulation.
• The trend structure remains constructive, supported by improving momentum and stable derivatives positioning.

Unless key support levels are breached, the bullish bias remains intact with potential for gradual upside expansion.