Nifty Maintains Higher-High Structure as Bullish Momentum Strengthens

Nifty continued its northbound journey and ended the session at 26,052.65, up 0.55%, after opening flat but gradually gaining strength throughout the day. The index formed a strong bullish candle on the daily chart, reinforcing its persistent higher-high and higher-low structure over recent sessions — a hallmark of a healthy uptrend.

Nifty remains comfortably above the middle Bollinger Band, while both the 9-EMA and 20-EMA are positively sloped and positioned well below the price. This alignment highlights strong trend traction and confirms continued buying interest at lower levels.

Technical Overview

Bullish Pattern on Hourly Charts

On the hourly timeframe, Nifty is forming a cup-and-handle pattern, a bullish continuation setup that typically precedes an upside breakout.

Momentum Indicators Improving

• RSI has inched up to 64, signalling strengthening momentum.
  
  
• MACD remains neutral but is edging closer to a potential bullish crossover, provided the index extends its gains.
  
  

 Derivatives Snapshot: Bulls Regain Strong Control

Derivatives data adds further conviction to the bullish outlook:

Strong Put Writing at Key Levels

• The 26,000 strike is now the strongest support base, with 1.27 crore Put OI, showing aggressive put writing.
  
  
• Additional support comes from the 25,500–25,800 zone, where substantial Put OI buildup creates a layered cushion.
  
  

Resistance at Higher Zones

• The 26,500 strike has witnessed heavy Call writing with 1.04 crore OI, making it a significant resistance area in the short term.
  
  

PCR Shows Healthy Reversal

• The Put–Call Ratio (PCR) has rebounded sharply from 0.70 to 1.29, indicating strong put writing and call unwinding.
  
  
• This shift reflects a strengthening bullish undertone and rising confidence among derivatives traders.
  

Market Outlook

Key Support Zones

• Immediate support lies at 25,850–25,800.
  Sustaining above this belt keeps the short-term bias decisively positive.
  
  

Key Resistance Zones

• The first hurdle stands at 26,100–26,150.
  
  
• A breakout above this zone could propel Nifty toward the all-time high of 26,277.35.
  
  

Trading Strategy

As long as Nifty stays above 25,800, a buy-on-dips strategy remains favourable, supported by:

• Strong price structure
  
  
• Constructive derivatives positioning
  
  
• Improving momentum signals
  
  

The broader trend continues to tilt in favour of the bulls.