The Nifty 50 index regained its upward momentum ahead of the monthly expiry, reversing a brief two-day losing streak. The index completed a healthy retest of its breakout neckline and is now displaying renewed signs of a bullish continuation. Holding comfortably above its previous resistance zones, Nifty has maintained a higher-high and higher-low structure, reaffirming a strong and sustainable uptrend.
Nifty Technical Overview: Strength Maintained Above Key Support Levels
On Monday, Nifty advanced 178.45 points to close at 25,966.75, maintaining its position above the breakout neckline with strong follow-through buying interest. From a technical standpoint, the index has established a solid base above the key support zone of 25,700.
It also continues to trade above the 10-day and 20-day exponential moving averages (DEMA), which reinforces the underlying positive bias.
Every minor dip is being actively bought, highlighting persistent accumulation by market participants. The 25,750–25,650 zone serves as a crucial “buy-on-dips” pocket, supported by multiple technical factors, including the breakout neckline and previous swing lows.
On the upside, Nifty faces intermittent resistance around the 26,000–26,100 zone, which coincides with prior supply levels. However, given the ongoing formation of higher highs and higher lows, the probability of a decisive breakout above 26,100 remains high.
As long as the index sustains above 25,600, the medium-term outlook remains decisively positive, backed by consistent bullish price action.
Key Levels to Watch (Nifty 50):
- Support: 25,700–25,600
- Resistance: 26,000–26,100
Momentum Indicators: RSI Signals Ongoing Strength
The Relative Strength Index (RSI 14) remains comfortably above 70, indicating strong momentum and sustained strength in the prevailing uptrend. This indicates that buyers remain firmly in control, and any short-term pullbacks are likely to find support quickly.
Thus, 25,700–25,600 acts as a critical support cluster, while immediate resistance lies near 26,000–26,100.
Derivatives Snapshot: Balanced Positioning Suggests Range-Bound Positivity
Derivatives data indicate a cautiously optimistic setup ahead of the monthly expiry, with both long and short positions being actively built. This points to a range-bound yet positive sentiment in the near term.
- Call Open Interest (OI): 1.36 crore contracts at the 26,100 strike, marking a key resistance area.
- Put OI: 1.52 crore contracts at the 25,900 strike, reaffirming strong support at lower levels.
- Put-Call Ratio (PCR): Rose sharply to 1.02 from 0.65, underscoring a bullish undertone and suggesting that any corrective move is likely to attract fresh buying from positional traders.
This balanced positioning implies that the index could oscillate within a defined range in the short term before attempting a decisive move.
Volatility Check: Composed Sentiment Despite Global Uncertainty
The India VIX edged up marginally by 2.31% on Monday, signaling a modest uptick in volatility but still reflecting a composed and confident market environment.
Despite global uncertainties, traders appear strategically positioned with disciplined risk management. The low-volatility phase underscores a tone of measured optimism and steady participation from both traders and investors.
Market Outlook: Uptrend Intact, Buy-on-Dips Strategy Favored
The Nifty continues to showcase a resilient bullish setup, with every dip being swiftly absorbed—a hallmark of a healthy uptrend. Although the index appears slightly stretched in the short term, this consolidation phase provides fresh accumulation opportunities within the ongoing higher-high, higher-low structure.
Persistent put writing at lower strikes highlights traders’ confidence in the ongoing rally. A sustained move above 26,100 could trigger fresh long positions and short-covering rallies, propelling Nifty toward 26,300 in the near term.
On the downside, strong demand is expected around 25,600–25,700, cushioning any short-term corrections. As long as the index holds above this critical support band, the broader trend remains decisively bullish.
Trading Strategy:
Maintain a Buy-on-Dips approach with support at 25,700–25,600 and look for a breakout above 26,000 for the next leg of the uptrend.
Easy & quick
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