Nifty Regains Bullish Footing; Breakout Above 25,350 Could Fuel Next Leg of Rally

The Nifty index regained bullish momentum, extending its upward bias while consolidating just below a crucial resistance zone. A breakout above this ceiling could unlock the next leg of the rally, signaling renewed strength in the broader market trend.

On Wednesday, Nifty advanced 178.05 points to close at 25,323.55, reinforcing the continuation of its positive momentum. Buyers have consistently emerged on declines, reflecting a resilient bullish structure. As long as the index holds above the 25,150 mark, buying interest is expected to persist on dips, keeping the near-term outlook constructive.

Technical Overview

From a technical perspective, Nifty remains range-bound within the 25,000–25,350 band, with a breakout on either side likely to dictate the next directional move. The index continues to trade comfortably above its 10-day and 20-day exponential moving averages (EMAs), both hovering near the 25,100 zone, creating a strong demand base.

This 25,100–25,150 zone now acts as a critical “buy-on-dips” pocket for positional traders. On the higher side, repeated rejections near the 25,300–25,350 band indicate a stiff resistance area. A decisive close above 25,350 could trigger a sharp short-covering rally and extend the bullish leg toward 25,500.

The RSI (14) continues to hover above 60, pointing to strengthening upside momentum. The consistent formation of higher highs and higher lows supports a constructive medium-term outlook. As long as Nifty sustains above 25,100, the broader trend remains firmly in favor of buyers.

Key Technical Levels:

• Support: 25,100–25,150
  
  
• Resistance: 25,300–25,350
  
  
• Upside Target: 25,500
  
  

Derivatives Snapshot

Derivatives data indicates a bullish undertone among market participants. Aggressive put writing has outpaced call writing, reflecting traders’ growing conviction in the index’s stability at current levels.

A significant open interest buildup of 80.06 lakh contracts at the 25,500 strike marks it as a critical resistance, while a strong put OI of 1.07 crore contracts at the 25,300 strike reinforces strong support nearby.

The Put-Call Ratio (PCR) surged to 1.23 from 0.68, suggesting a notable shift toward bullish sentiment. The gradual shift of call positions to higher strikes, coupled with fresh put additions near current levels, signals continued accumulation and room for upside movement.

Volatility Check

The India VIX fell 5.6% on Wednesday, extending its subdued trend. Despite trading near historically low levels, this reflects calm yet cautious sentiment, as traders continue to maintain protective hedges. The low-volatility setup supports the possibility of a range expansion on the higher side, provided a breakout sustains.

Market Outlook

Nifty continues to exhibit a strong short-term structure, comfortably holding above its 10-day and 20-day EMAs. The sustained buying momentum and persistent put writing at key strikes highlight underlying bullish conviction, even amid range-bound action.

A clear breakout above 25,350 could accelerate momentum toward 25,500, while the 25,100–25,000 zone remains a crucial support band to absorb profit-taking. Until a decisive move occurs, traders can maintain a bullish-to-neutral stance, adopting a range-trading approach — buying near support and booking profits near resistance.

Key Takeaways

Bottom Line

The bulls remain in control, with Nifty holding firmly above short-term averages and derivative positioning favoring buyers. As long as support near 25,100 holds, the bias stays positive. A decisive close above 25,350 could fuel the next phase of the rally toward 25,500, reaffirming Nifty’s bullish footing.