The Nifty index continues to display a resilient bullish structure, sustaining higher highs and higher lows while holding firm near elevated levels despite intermittent intraday volatility. The benchmark is currently positioned at a technically significant juncture, with price action suggesting the potential for fresh all-time highs in the near term.
Notably, Nifty is attempting a breakout from a double-bottom formation and is hovering close to its neckline resistance. A sustained move above the 26,250 level could act as a trigger for accelerated upside momentum in the coming sessions.
On Tuesday, the index remained largely range-bound and ended the session almost flat, closing marginally higher by 4.75 points at 26,177.15.
Nifty Technical Outlook: Trend Structure Remains Bullish
From a trend perspective, the Nifty continues to trade comfortably above its 10-day and 20-day exponential moving averages (EMAs), indicating strong downside protection and a healthy short-term trend. Importantly, the index has held firmly above the psychological 26,000 mark, which has now evolved into a critical support base.
Given the prevailing bullish undertone, any retracement toward the 26,000 region is likely to attract fresh buying interest, as market participants continue to accumulate long positions near key support zones. The persistent higher-low formation further strengthens the argument that the broader structure remains constructive.
Momentum Indicators Support Further Upside
Technical indicators continue to reinforce the positive setup. The Relative Strength Index (RSI) remains comfortably above the neutral 50 level, reflecting steady accumulation and sustained buying interest on minor declines. The overall momentum profile suggests that the market is consolidating constructively rather than exhibiting signs of exhaustion.
With the index on the verge of confirming a double-bottom breakout, the probability of a continuation move toward new lifetime highs appears favourable, provided key resistance levels are decisively cleared.
Derivatives Snapshot: Bullish Bias Strengthens
The derivatives data points toward a clear buy-on-dips bias in the market.
- Put writers have aggressively added fresh positions at at-the-money and nearby strikes, reinforcing a strong support base with every minor decline.
- Call writers, on the other hand, have reduced exposure at lower strikes and rolled positions higher, indicating expectations of further upside rather than immediate resistance.
A notable build-up of approximately 79.73 lakh call contracts at the 26,200 strike establishes this level as an immediate resistance zone. Conversely, the accumulation of nearly 1.19 crore put contracts at the 26,000 strike provides a robust downside cushion.
The Put-Call Ratio (PCR) has improved to 1.08, reflecting rising bullish sentiment and confirming that buyers are actively defending lower levels.
Key Support and Resistance Levels to Watch
- Immediate Resistance: 26,200–26,250
- Major Breakout Level: Sustained close above 26,250
- Immediate Support: 26,000
- Strong Demand Zone: 26,000–25,900
A decisive breakout above 26,250 could trigger a short-covering rally, potentially propelling the index toward fresh all-time highs near the 26,400 zone. On the downside, any dip toward 25,900–26,000 is likely to be viewed as a buying opportunity rather than a trend reversal.
Market Outlook: Buy-on-Dips Strategy Remains Valid
Overall, the Nifty continues to signal improving market sentiment, with declines being consistently absorbed near support levels. The combination of a higher-low price structure, sustained trade above key moving averages, and supportive derivatives positioning suggests that downside risks remain limited.
While sellers are still active in the 26,200–26,250 resistance band, the broader setup favours accumulation on dips. Unless the index breaks below the 25,900 support zone, the buy-on-dips strategy remains firmly intact, keeping the broader bullish bias unchanged.
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