Nifty Sustains Seven-Day Winning Streak; Breakout Above 25,050 Key for Fresh Momentum

Nifty Market Overview

The Nifty 50 index extended its rally for the seventh consecutive session, closing at 25,005.50 with modest gains of 32.40 points. The index continues to remain in a range-bound phase, testing the resilience of bulls and bears alike.

Despite muted action, Nifty managed to defend its 24,800 support zone, aided by the 20- and 50-DEMA cluster. Importantly, the formation of higher lows underscores the absence of sustained bearish pressure, keeping the broader trend constructive.

On the daily chart, the index stayed contained within the prior day’s candlestick range, highlighting indecision. A breakout beyond 25,050 on the upside or 24,800 on the downside is likely to determine the next directional move.

 Nifty Technical Highlights

• Support Zone: 24,800 (20- & 50-DEMA confluence).
  
  
• Resistance Zone: 25,050 followed by 25,200.
  
  
• RSI: Above 55, signaling gradually improving momentum.
  
  
• Pattern: Higher highs and higher lows, reinforcing bullish undertone.
  
  

Until a decisive breakout above 25,050, Nifty may continue consolidating, but a buy-on-dips strategy remains favorable.

Derivatives Snapshot

In the F&O segment, cautious optimism prevailed:

• 25,500 strike saw heavy call OI buildup of 1.05 crore contracts, cementing it as a strong resistance ceiling.
  
  
• 25,000 strike recorded the highest put OI at 1.06 crore contracts, reinforcing it as a solid support base.
  
  
• PCR (Put-Call Ratio): Improved to 1.15 from 1.08, suggesting a bullish bias.
  
  

Fresh put writing at current levels indicates limited downside conviction, while incremental call writing at higher OTM strikes signals early optimism.

Volatility Check

The India VIX slipped 1.68% to 10.36, reflecting cooling volatility. Such subdued readings point to a consolidation phase rather than panic-led trade, showing that participants remain cautiously optimistic without aggressive hedging.

 Market Outlook

While Nifty has successfully closed above the 25,000 mark, conviction remains low without a strong follow-through rally. However, the shift of call writing to higher strikes signals early signs of optimism.

• Upside Trigger: A decisive breakout above 25,050 may spark short covering and push the index toward 25,200.
  
  
• Downside Base: As long as 24,700–24,800 holds, the broader buy-on-dips approach stays valid.
  

Overall, the constructive trend remains intact, with higher highs and higher lows shaping a bullish undertone.