Nifty Eyes Pullback but Stays Capped Below 25,350 – Key Resistance in Focus

The Nifty 50 index is gradually showing signs of a possible trend reversal, but remains confined within a tight consolidation zone. The battle between bulls and bears continues near the psychologically significant 25,000 level, keeping traders on edge and markets directionless.

 Nifty Technical Overview

The index closed the session marginally higher by 16.25 points at 25,212.05, marking a higher low formation, which is often an early sign of bullish intent. However, a sustained breakout above 25,350 remains elusive, keeping the index locked within a range.

 Key Technical Observations:

• Support Zone:
  
  
  • 25,000–25,050 → Psychological level + 50% Fibonacci retracement
    
    
• Resistance Zone:
  
  
  • 25,250–25,330 → Key supply area with 20-day EMA acting as dynamic resistance
    
    
  • 25,350 → Pivotal breakout point
    
    
• Candlestick Pattern: Small-bodied candle within prior range → Reflects indecision
  
  
• Indicators:
  
  
  • RSI at ~50 → Neutral, signals lack of strong directional momentum
    
    
  • Price vs 20-day EMA: Still trading below → Short-term bias remains bearish to sideways
    
    

Until the Nifty breaks above 25,350, any rally is likely to be met with profit-booking or fresh shorts near resistance zones.

 Derivatives Snapshot

The options data suggests mixed sentiment with a tilt toward caution.

Insights:

• Call writers remain dominant, especially at 25,500.
  
  
• Put writers cautious, indicating low confidence in upside breakout.
  
  
• Max Pain at 25,200 further anchors price near current levels.
  
  

 Volatility and Sentiment

• India VIX: Dropped by 2.09% to 11.24
  
  
• Implication: Low volatility signals controlled price action, not panic-selling.
  
  
• Sentiment: Sideways, with minor bullish triggers but resistance-heavy outlook.
  
  

 Nifty Market Outlook

Despite early signs of a reversal, Nifty needs to convincingly close above 25,350 to change the trend bias. Until then:

• Short-term traders may continue to play the range with quick entries/exits.
  
  
• Positional traders should wait for a confirmed breakout above the resistance zone.
  
  

 FPIs remain cautious, continuing to build short positions in index futures—another sign that the broader market lacks conviction for a sharp upside.