Nifty Ends Two-Week Losing Streak; Bullish Continuation Pattern Signals Strength Near 26,000

The Nifty index put an end to its two-week losing streak as strong buying interest emerged from lower levels, reinforcing a bullish continuation pattern and a structurally healthy market setup. Despite continued consolidation near the psychological 26,000 mark, which remains a critical overhead barrier, the index has consistently held above the 25,800–25,700 demand zone, supported by a bullish gap that provides a reliable cushion for buyers.

Nifty Rebounds With a Bullish Candle Formation

On Friday, Nifty gained 30.90 points to close at 25,910.05, forming a solid bullish candle that highlighted growing buyer dominance. Its ability to close above the previous week’s high further strengthens the improving technical structure, signalling that bulls are steadily reclaiming control of market momentum.

Technical Setup Remains Constructive Above Key Moving Averages

From a technical perspective, Nifty continues to display a bullish continuation pattern, supported by:

• A higher-low formation
  
  
• A sustained hold above its 10-day and 20-day exponential moving averages (DEMA)
  
  
• A stable base above the 25,700–25,780 gap support
  
  

These moving averages—previously acting as resistance—have now transitioned into dynamic support zones, reinforcing a positive short-term outlook. As long as Nifty trades above 25,700–25,650, traders are expected to maintain a buy-on-dips stance.

Key Levels to Watch: Support at 25,750 and Resistance at 26,000

On the upside, immediate resistance remains at the 26,000 zone. A sustained breakout above this mark could trigger momentum-driven buying, opening the door to higher targets.

However, a dip below 25,750 may invite renewed selling pressure and temporarily shift sentiment toward caution.

Momentum indicators also support the bullish case, with the 14-day RSI holding above 60, indicating strong short-term momentum.

Key Levels:

• Support: 25,750 / 25,700–25,650
  
  
• Resistance: 25,950–26,000
  
  

Derivatives Snapshot: Balanced Positioning with an Upward Bias

Derivative data suggests a mildly cautious yet constructive market undertone:

• 26,000 Call strike saw a significant open interest (OI) buildup of nearly 1.50 crore contracts, confirming it as a major resistance ceiling.
  
  
• 25,500 Put strike recorded strong OI accumulation of around 90.86 lakh contracts, indicating a solid support base.
  
  
• Simultaneous call and put writing indicates expectations of range-bound trade with a positive tilt.
  
  

The Put-Call Ratio (PCR) cooled to 0.79 from 1.03, reflecting cautious positioning as market participants hold onto their short strategies more firmly.

Market Outlook: Range-Bound but Positively Biased

Nifty remains confined within the 25,750–26,000 trading range, even as it successfully reversed its two-week decline. While the index enjoys firm support from major moving averages, persistent foreign portfolio investor (FPI) outflows across cash and derivatives segments call for measured caution.

A decisive move above 26,000 could spark a fresh rally and reestablish a strong uptrend. Conversely, a fall below 25,700 could signal short-term weakness and invite profit-booking.

Until a clear breakout materializes, traders should adopt a selective and disciplined approach, leveraging opportunities that emerge outside the consolidation range for directional clarity.