NIFTY 50 Shows Constructive Setup; Momentum Shift Favors Bulls

Session Recap

Tuesday’s session reinforced the underlying bullish undertone. After opening marginally lower, Nifty staged a swift rebound from key support levels and witnessed steady buying interest throughout the day.

The index settled 42.65 points higher at 25,725.40, extending its upward follow-through and maintaining positive short-term momentum.

Technical View

Technically, the index appears to have formed an immediate bottom, supported by a higher-low structure on the daily chart — a constructive sign for trend continuation.

Key Observations:

• Strong Accumulation Base: 25,500–25,400 zone
• Reclaimed 10 & 20-day EMAs: Signals positive near-term momentum shift
• Immediate Resistance: 25,800
• RSI: Hovering near 50, indicating balanced momentum and scope for expansion

A decisive close above 25,800 could trigger fresh short covering and accelerate upside traction. Until then, the index remains in a constructive consolidation phase.

Derivatives Snapshot

Options positioning suggests an optimistic yet range-bound outlook.

Open Interest Highlights:

• 26,000 Call Strike: ~89.83 lakh contracts (major resistance zone)
• 25,500 Put Strike: ~75.22 lakh contracts (strong near-term support)
• Put–Call Ratio (PCR): 0.97 — mildly optimistic but defensive

Aggressive call writing at in-the-money strikes is capping immediate upside, while put writing near at-the-money levels reflects confidence in support stability.

Key Levels to Watch

• Immediate Support: 25,500
• Secondary Support: 25,400
• Breakout Trigger: 25,800
• Upside Target on Breakout: 26,100

Market Outlook

The broader bias remains positive with a “Buy on Dips” approach favored in the near term.

• Sustained trade above 25,800 could unlock short-covering momentum.
• Holding above 25,500 keeps the bullish structure intact.
• Declines toward support zones are likely to attract accumulation interest.

Unless the 25,500 base is decisively breached, the technical setup continues to favor gradual upside expansion toward the 26,000–26,100 region.