Nifty Extends Winning Streak; Bullish Structure Intact

The Nifty index extended its winning streak for the second consecutive week, reinforcing its bullish structure with a steady series of higher highs and higher lows. The index has successfully broken out of its recent consolidation, with earlier resistance zones now acting as strong support levels.

On Friday, Nifty advanced 103.55 points to close at 25,285.35, marginally above the breakout mark. As long as the index sustains above this crucial level, dips are expected to attract renewed buying interest, keeping the short-term setup constructive.

Technical Overview

From a technical standpoint, Nifty is trading close to its two-week highs, signaling strong follow-through momentum. The index continues to hold well above its 10-day and 20-day exponential moving averages (EMAs), both placed around 25,000, forming a solid demand base.

The zone between 25,100 and 25,150 has emerged as a buy-on-dips pocket for positional traders. On the upside, a sustained breakout above 25,300–25,330 would confirm a clean bullish continuation, potentially triggering a short-covering rally toward higher levels.

Momentum indicators also affirm this bullish bias. The Relative Strength Index (RSI) has climbed above 60, indicating improving strength and healthy trend momentum. As long as the index maintains its higher-low structure, the medium-term setup remains firmly positive.

Key support now lies between 25,100 and 25,150, while resistance persists near 25,300–25,330.

Derivatives Snapshot

The derivatives setup continues to reflect a strengthening positive sentiment. Aggressive put writing was seen across the 25,200–25,300 strikes, suggesting traders’ confidence in near-term support.

A substantial open interest buildup of 1.21 crore contracts at the 25,500 strike reaffirms it as a key resistance level, while heavy put OI of 1.50 crore contracts at 25,200 highlights strong base support for the index.

The Put-Call Ratio (PCR) surged to 1.40 from 1.00, indicating increasing optimism and expectations of sustained momentum above 25,000. The migration of call positions to higher strikes, alongside continued put additions at lower levels, signals a gradual bullish bias with limited downside risk.

Volatility Check

The India VIX edged slightly lower by 0.17% on Friday, marking a modest weekly move of 0.42%. Volatility remains near historically low levels, reflecting a composed market tone. The subdued VIX suggests that traders are adopting measured risk strategies with adequate hedging amid ongoing market uncertainties.

Market Outlook

Nifty has logged two straight weeks of gains, backed by consistent higher-high and higher-low formations, along with robust put writing at at-the-money strikes. This indicates sustained accumulation and strong buying conviction at lower levels.

The index’s ability to hold above its short- and medium-term moving averages strengthens the overall bullish narrative. A decisive close above 25,300 could trigger the next leg of the rally toward 25,500, while immediate support rests at 25,150, followed by 25,000.

Until a clear breakout unfolds, a “buy-on-dips” approach remains the most prudent strategy, as the broader trend continues to favor the bulls.

Key Levels to Watch

Bottom Line

The market tone remains constructively bullish, supported by strong technical structure, improving momentum, and healthy derivatives positioning. As long as Nifty sustains above 25,000, the broader trend stays in favor of buyers, with 25,500 emerging as the next major target upon a confirmed breakout.