The Nifty 50 trading strategy remains in focus as Indian equities extended their upward move for the third straight session. Tuesday’s trade showed steady confidence, with benchmark indices holding on to gains and buyers staying active near record territory.
The broader mood stayed positive, supported by selective buying in heavyweight stocks. While momentum is intact, the market is also showing signs of caution near key psychological levels.
Market Performance: Benchmarks Hold Gains
Indian equity benchmarks traded higher through the session, continuing the ongoing rally.
- Sensex rose 380.13 points, or 0.45%, to 84,445.88
- Nifty 50 gained 113.75 points, or 0.44%, trading at 25,981.05
- Bank Nifty added 79.70 points, or 0.13%, to 60,749.05
The 26,000 zone on Nifty 50 remained a closely watched level, with the index hovering just below it for most of the session.
Index Movement: Carry-Forward Strength From Previous Session
In the last trading session, the Nifty 50 settled at 25,867.30, registering a gain of 173.60 points, or 0.68%, for the day.
That session ended with the formation of a Doji candle, often seen when the market pauses after a strong move. This reflects a balance between buyers and sellers, suggesting that traders are assessing the next directional cue.
This price action sets the context for the current Nifty 50 trading strategy, where trend continuation and resistance zones become important.
Stock-Specific Action: Gainers and Drags
Movement within the index remained mixed, with strength seen in select large-cap stocks.
Top Gainers in Nifty 50
Top Losers in Nifty 50
This rotation highlights how investors are selectively booking profits while continuing to support sectors showing relative strength.
Options Data: Key Levels in Focus
From a Nifty 50 trading strategy perspective, derivatives data continues to outline important zones to watch.
- Highest Call Open Interest:
- 26,000 strike
- Followed by 25,800 strike
- Highest Put Open Interest:
- 25,600 strike
- Followed by 25,800 strike
These levels indicate clearly defined resistance near 26,000 and support around 25,600–25,800. Such positioning often reflects where traders are placing their bets for near-term movement.
Trading Range Indication
The at-the-money option premium stands at ₹329, which suggests a defined trading band for the week.
Based on this pricing:
- The implied range points to movement broadly between 24,600 and 25,500
This range highlights that while the broader trend remains positive, sharp directional moves may face resistance unless fresh triggers emerge.
What This Means for Nifty 50 Trading Strategy?
The current setup reflects a market that is strong but measured.
- Index is holding above recent breakout levels
- Resistance remains firm near 26,000
- Support zones are well-defined near 25,600–25,800
- Options data signals controlled expectations
Rather than aggressive moves, the market appears to be digesting recent gains.
Summary
The Nifty 50 trading strategy right now revolves around consolidation with an upward bias. After three consecutive sessions of gains, the index is pausing near a key milestone.
Support from select heavyweight stocks continues, but profit booking in others is keeping gains in check. With clear support and resistance levels visible through price action and derivatives data, traders are closely tracking how the index behaves around the 26,000 mark.
As things stand, the market’s story is not about speed—but about balance.
Source: Livemint
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