The Nifty 50 continues to display a resilient bullish structure despite a temporary pause in follow-through buying. While short-term supply pressure has emerged near overhead resistance levels, the index remains comfortably positioned above its key support zones, preserving a well-defined sequence of higher highs and higher lows. This price behavior underscores underlying strength and keeps the broader outlook constructive.
Even amid intermittent intraday volatility, Nifty has managed to sustain elevated levels, indicating that selling pressure remains limited. The broader structure continues to hint at the potential for fresh record highs, provided key resistance levels are decisively breached.
Nifty Near Double-Bottom Breakout Zone
Technically, the index is hovering near the neckline of a double-bottom formation, making a concerted effort to push higher. A sustained move above the critical 26,250 mark could act as a catalyst for sharp bullish acceleration in the coming sessions, potentially triggering momentum-led buying.
On Wednesday, Nifty traded largely within its prior range, reflecting a phase of consolidation. The index closed marginally lower by 35.05 points at 26,142.10, highlighting indecision but not weakness.
Trend and Momentum Analysis
From a trend perspective, Nifty continues to trade above its 10-day and 20-day exponential moving averages (EMAs), which reinforces strong downside protection. The psychologically important 26,000 level has been firmly defended and now coincides with a confluence of short-term moving averages, strengthening its role as a key support base.
Given the positive undertone, any retracement toward the 26,000–25,900 zone is likely to attract fresh buying interest, as market participants continue to accumulate positions near critical supports.
Momentum indicators further support the bullish narrative. The Relative Strength Index (RSI) remains comfortably above the neutral 50 mark, signalling steady accumulation and sustained buying interest on declines. The persistence of the higher-low structure keeps the probability of upside continuation intact.
Derivatives Snapshot: Supportive but Cautious
The derivatives setup reflects a neutral-to-positive bias. Put writers have continued to aggressively add fresh positions at at-the-money and nearby strikes, reinforcing a robust support base on every minor dip. At the same time, call writers have also added exposure at at-the-money and higher strikes, suggesting expectations of a sideways-to-positive market structure in the near term.
- Call OI: Nearly 1.38 crore contracts at the 26,200 strike, marking it as an immediate resistance zone
- Put OI: Around 1.53 crore contracts at the 26,000 strike, forming a strong downside cushion
- Put-Call Ratio (PCR): Eased to 0.91 from 1.08, indicating mild caution while highlighting active participation from both bulls and bears
This positioning suggests that market participants are actively defending their respective levels, keeping volatility contained.
Market Outlook: Buy-on-Dips Strategy Intact
Despite the lack of aggressive follow-through buying, market sentiment continues to improve gradually. Declines are being consistently absorbed near support zones, while the index remains close to confirming its double-bottom breakout. Sustained trade above short-term moving averages indicates that downside risks remain limited in the near term.
However, sellers continue to cap upside moves in the 26,200–26,250 resistance band, making a decisive breakout essential for renewed momentum.
- Key Support Zone: 26,000–25,900
- Immediate Resistance: 26,200–26,250
A decisive and sustained close above 26,250 could trigger a short-covering rally, potentially driving the index toward fresh all-time highs near 26,400. Conversely, any pullbacks toward 25,900 are likely to be viewed as buying opportunities, keeping the broader buy-on-dips strategy firmly in play.
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