NIFTY 50 Enters Sideways Phase; 25,350 Emerges as Make-or-Break Support

Market Overview: Indecision at Crucial Levels

The Nifty 50 traded in a narrow range and ended marginally higher by 14.05 points at 25,496.55, forming a small-bodied candle on the daily chart. The formation signals indecision and cautious undertones, as the index consolidates near a key inflection zone.

After multiple defenses, 25,350 has emerged as a make-or-break short-term support, making it the most critical pivot for the near-term trend.

Technical Structure: Sandwiched Between Key Averages

Technically, Nifty remains in a consolidation band:

• Trading below the 20-DEMA and 50-DEMA, indicating capped upside
• Holding above the 200-DEMA, which provides medium-term support

Resistance Zone

• 25,600–25,650: Strong supply area
  • Aligned with the 0.382 Fibonacci retracement
  • Confluence with the 50-DEMA

Unless Nifty sustains above 25,650 on a closing basis, upside momentum is likely to remain restricted.

Support Zone

• 25,300–25,250: Immediate support band
  • Confluence of 0.618 retracement and 200-DEMA
• 25,000–24,900: Next downside zone if breakdown occurs

A decisive breach below 25,250 could trigger fresh long unwinding and accelerate selling pressure.

Momentum Indicators

• RSI near 47 reflects subdued momentum
• Lack of bullish strength confirmation
• Bias remains neutral-to-cautious within the current range

Derivatives & Options Data

• PCR around 0.70: Suggests cautious undertone
• Aggressive call writing at 25,500–25,600
• Indicates strong overhead resistance

The options positioning reinforces the view that rallies may face supply unless there is decisive short covering above 25,650.

Outlook: Range-Bound Until Breakout

Nifty appears to have entered a sideways consolidation phase, caught between resistance near 25,650 and support at 25,350–25,250.

• Above 25,650: Potential resumption of upward momentum
• Below 25,250: Risk of extended correction toward 25,000–24,900

Until a decisive breakout occurs, the broader setup favors a sell-on-rise approach within the range.