Nifty Shows Resilience Near 26,000 as Dip Buying Emerges

Nifty staged a swift rebound after a gap-down opening, successfully defending its well-defined gap-support zone and reclaiming the 20-day exponential moving average (20-DEMA). This recovery highlights renewed buying interest near the demand area and reinforces the importance of the 26,000 psychological level, which the index managed to reclaim during the session.

The formation of a higher low on intraday charts signals early signs of revival, establishing the 26,000 zone as an immediate support base for the coming sessions. On Monday, Nifty closed marginally lower by 19.65 points at 26,027.30. Despite the subdued close, the price action reflects underlying resilience, with intraday declines consistently attracting buyers. A sustained move above the recent swing high of 26,200 will be crucial to confirm a more durable uptrend.

Technical View

From a technical standpoint, Nifty continues to trade within a time-wise consolidation phase, with the broader range defined between 26,220 on the upside and 25,700 on the downside. However, the prevailing lower-high structure keeps 26,200 as a critical inflection point for any meaningful trend shift.

Momentum indicators mirror this neutral setup. The RSI hovering near the 50 mark signals the absence of a strong directional bias, reinforcing the view that the index is consolidating through time rather than undergoing a sharp price correction.

Derivatives Snapshot

The derivatives setup reflects a constructive yet cautious undertone. Put writers have added fresh positions aggressively at at-the-money and nearby strikes, strengthening the support base during declines. Meanwhile, call writers have partially unwound positions and rolled over to higher strikes, indicating expectations of continued consolidation rather than an immediate breakout.

• 26,200 strike: Nearly 1.55 crore call contracts, confirming a strong resistance zone
• 25,900 strike: Close to 1.89 crore put contracts, underlining a robust support cushion
• Put-Call Ratio (PCR): Improved to 1.21 from 1.13, reflecting rising optimism and relatively aggressive buyer positioning at lower levels

Market Outlook

Nifty’s ability to defend key supports and recover swiftly from intraday declines suggests that dips are increasingly being viewed as accumulation opportunities. However, the broader structure remains delicate due to the ongoing lower-high formation, with sellers still active near the 26,200 region.

The 25,800–25,900 band has emerged as a decisive demand zone and will be critical in sustaining near-term stability. The shift of call writers to higher strikes, along with strong put writing near at-the-money levels, reinforces the prevailing range-bound bias.

• Above 26,200: Bullish momentum could revive, opening the path toward 26,350
• Below 25,900: Structure may weaken, inviting selling pressure toward 25,700

Until a decisive breakout or breakdown occurs, Nifty is likely to remain in a consolidation phase, with selective dip-buying near support levels remaining the preferred strategy.