NIFTY 50 Trades in Tight Range; Neutral Bias Within 25,350–25,650 Band

Market Recap: Smart Rebound, But No Breakout

Nifty defended its crucial 25,350 make-or-break level and staged a sharp rebound, recovering nearly half of the previous session’s losses. The index settled 116.90 points higher at 25,571.25, reclaiming 25,500 amid short covering.

However, despite the bounce, the broader structure remains range-bound and indecisive, with no decisive breakout yet.

Technical View: Resistance Caps Upside

• Support Zone: 25,350 — critical breakdown trigger.
• Below 10 & 20-day EMAs: Positioned near 25,600–25,650, now acting as immediate resistance.
• RSI Below 50: Momentum remains subdued and lacks strong bullish conviction.

A sustained close above 25,650 is essential to revive upward momentum. Conversely, a breakdown below 25,350 could intensify selling pressure.

Derivatives Snapshot: Cautious Undertone

Options data reflects guarded positioning:

• 25,800 Call OI: 1.13 crore contracts — strong overhead resistance.
• 25,500 Put OI: 99.89 lakh contracts — near-term support base.
• PCR at 0.87: Suggests cautious sentiment with mild bearish tilt.

The heavy call writing near 25,800 indicates traders expect limited upside unless a breakout materializes.

Key Levels to Track

Strategy & Outlook

The strategy remains neutral within the 25,350–25,650 range.

• Below 25,350: Risk of decline toward 25,200–25,000.
• Above 25,650: Confirms directional breakout and potential upward expansion.

Until either boundary is breached decisively, expect range-bound trade with stock-specific action dominating the broader index.