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.
