Bulls Tighten Grip on Nifty; Resistance at 25,500 Holds the Key

The Nifty index extended its upward momentum, edging closer to its major swing high of 25,669, now less than 1% away. The index’s ability to sustain at elevated zones—where buyers consistently absorb dips—signals a firmly entrenched bullish trend. The steady formation of higher lows over the past three weeks further underlines the strength of the ongoing rally.

Nifty Technical View

Thursday’s session was volatile. After a gap-up start that was nearly retraced, strong buying emerged in the final hour, reviving momentum. This recurring pattern—where earlier resistance zones are now acting as support- highlights the market’s robust foundation.

On the daily chart, Nifty continued its follow-through move above the neckline breakout of its previous swing high, validating the classic shift of resistance into support. Any corrective declines are expected to offer fresh accumulation opportunities.

• Closing: 25,423.60 (+93.35 points)
  
  
• Immediate Support: 25,200–25,300
  
  
• Resistance: 25,500 (key hurdle); a breakout could open doors to 26,000
  
  
• Momentum Indicators: RSI above 65, confirming sustained bullish strength
  
  

Derivatives Snapshot

Derivatives positioning continues to favor the bulls:

• Fresh OI of 1.15 crore contracts at the 25,500 strike reinforced this level as a resistance ceiling.
  
  
• Putting the OI of 93.91 lakh contracts at 25,300 reaffirmed it as a strong support.
  
  
• The Put-Call Ratio (PCR) eased marginally from 1.16 to 1.09 but still signals a bullish bias.
  
  

Fresh put writing suggests limited conviction for sharp downsides, while call writing is gradually shifting to higher strikes, reflecting confidence in sustained momentum.

Volatility Check

The India VIX slipped 3.54% to 9.85, its lowest-ever close. Such muted volatility signals measured optimism, as traders refrain from aggressive hedging despite intraday swings.

Market Outlook

Nifty’s bullish undertone remains intact, reinforced by the fact that the index hasn’t closed below its prior day’s low in recent weeks, a clear sign of strong dip-buying.

With call writers shifting to higher strikes and put writers adding positions near at-the-money levels, the setup continues to favor bulls. Persistent FPI short-covering and a sharp reduction in overall short exposure further boost sentiment.

• As long as Nifty sustains above 25,200–25,300, buyers are likely to stay active.
  
  
• A decisive breakout above 25,500 could set the stage for an extended rally toward 26,000.
  
  
• While minor profit-booking is possible at stretched levels, the broader market structure remains bullish, making a buy-on-dips strategy the preferred approach.