Nifty Hovers Near 25,000; Higher-Low Structure Intact, Buy-on-Dips Favored

Nifty extended its winning streak, closing at 24,973.10 with a gain of 104.50 points, while continuing to defend higher levels. Importantly, this marks the eighth straight session where the index has closed above the prior day’s low, underscoring the absence of sustained bearish pressure.

That said, the index continues to grapple with the psychological 25,000 mark, which has emerged as a stiff resistance zone. On the daily chart, an indecisive candlestick was formed, suggesting that a move beyond either today’s high or low will likely dictate the next directional trend.

Technical View: Nifty

• Support levels: 24,800 has repeatedly proven to be a reliable base, supported by the 20- and 50-DEMA cluster.
  
  
• Resistance levels: Immediate hurdles are placed at 25,050, followed by 25,150.
  
  
• Trend structure: The pattern of higher highs and higher lows remains intact, highlighting continuation of upward momentum.
  
  
• Indicators: RSI at 55 signals a neutral bias with scope for improvement.
  
  

As long as the 24,800 zone holds firm, a buy-on-dips approach remains favorable.

Derivatives Snapshot

• Resistance ceiling: Heavy call writing at the 25,000 strike, with OI at 1.04 crore contracts, confirms it as a tough resistance.
  
  
• Support base: The 24,900 strike attracted the highest put OI of 77.14 lakh contracts, strengthening it as near-term support.
  
  
• Market positioning: Fresh put writing suggests limited conviction for a steep downside, while persistent call writing highlights the difficulty in breaching 25,000.
  
  
• PCR update: The Put-Call Ratio (PCR) rose to 1.08 from 0.92, signaling a mild bullish tilt and scope for sustained upside if a breakout occurs.
  
  

Volatility Check

• India VIX eased 1.38% to 10.53, reflecting cooling volatility.
  
  
• The subdued reading suggests a consolidation phase, rather than panic-driven moves, as traders hold back from aggressive hedging.
  
  

Market Outlook

Nifty remains at a make-or-break point near 25,000, where concentrated call writing has built a formidable barrier. However, the higher-low structure, strong base at 24,700–24,800, and support from key moving averages continue to underpin the bullish undertone.

• A sustained move above 25,050 could spark short covering, opening the door for a rally toward 25,200.
  
  
• Until then, the index is likely to trade with a sideways-to-positive bias, with buying on dips as the preferred strategy.