NIFTY 50 Stabilises Above Key Averages; 25,500–26,000 Range in Focus

Market Overview: Gradual Recovery Continues

Nifty extended its recovery for another session, settling at 25,713.00 (+0.55%). The undertone remained positive, supported by steady buying on dips. After recent volatility, the index is stabilising and consolidating around the mid-zone of the prior corrective swing.

The structure suggests base formation within a recovery phase, rather than an impulsive breakout.

Technical Structure: Short-Term Strength, Medium-Term Hurdle

• Above 10-day & 20-day SMAs: Reflects improving short-term bias.
• 50-day SMA: Immediate resistance and key hurdle for further upside.
• 200-day SMA near 25,300: Acting as strong broader support.
• MACD: Turned positive, indicating momentum improvement.
• RSI near 51: Neutral-to-positive tilt.

The index continues oscillating between the 0.382 and 0.50 Fibonacci retracement levels, signalling consolidation within recovery.

Derivatives Snapshot: Defined Trading Band

Options data reinforces a capped range structure:

• 26,000 Call OI: 1.85 crore contracts — strong overhead resistance.
• 25,500 Put OI: 1.31 crore contracts — solid support base.
• PCR at 0.97: Reflects neutral positioning.

The heavy call writing near 26,000 suggests limited upside unless a strong breakout triggers short covering.

Volatility Check

India VIX at 14.17 indicates moderate volatility, supporting the likelihood of range-bound trade in the near term.

Key Levels to Watch

Outlook

With defined options positioning and moderate volatility, Nifty is likely to remain range-bound between 25,500 and 26,000 in the near term.

• Above 26,000: Could trigger fresh directional momentum.
• Below 25,500: May invite renewed selling pressure.

Until a decisive breakout occurs, expect consolidation with stock-specific action dominating broader index moves.