Nifty Under Pressure at Higher Levels; Stability Above 25,000 Keeps Bulls Hopeful

The Nifty index remained trapped within a narrow trading range on Tuesday, facing renewed selling pressure near resistance levels. Despite the weakness, the index managed to hold firmly above its psychological support of 25,000, which earlier acted as a key resistance zone. Nifty slipped 81.85 points to close at 25,145.50, though a late-session recovery signalled that buyers are still active on declines.

As long as the index sustains above the 25,000 mark, buying interest is likely to emerge on dips, keeping the broader trend range-bound but resilient in the near term.

Technical Overview

From a technical perspective, Nifty remains boxed within a consolidation zone of 25,000–25,300, with a breakout on either side expected to define the next directional move. The index continues to trade comfortably above its 10-day and 20-day exponential moving averages (EMAs), both positioned near 25,100, reaffirming a firm demand base.

The 25,100–25,150 zone now acts as a critical “buy-on-dips” pocket for positional traders. However, repeated rejections near the 25,300–25,330 resistance band have kept upside momentum capped. A decisive close above this range could trigger a short-covering rally and open the door for a move toward 25,500.

Structurally, the medium-term setup remains constructive as long as the index holds above 25,000, supported by a series of higher highs and higher lows. However, momentum indicators suggest a pause in directional strength — the RSI (14) is hovering near 50, signalling a neutral to consolidative phase.

Key Technical Levels:

• Support: 25,100–25,000
  
  
• Resistance: 25,300–25,330
  
  
• Breakout Target (on upside): 25,500
  
  

Derivatives Snapshot

The derivatives data paints a picture of caution among traders. Aggressive call writing has outpaced put writing, reflecting a defensive stance near higher levels.

A significant open interest (OI) buildup of 63.19 lakh contracts at the 25,200 strike marks this zone as a major resistance, while strong put OI of 39.02 lakh contracts at the 25,000 strike highlights the base support for the index.

Notably, the shift of put positions to lower strikes alongside fresh call additions around current levels suggests a cautious tone, with limited upside potential in the near term. The Put-Call Ratio (PCR) fell sharply to 0.68 from 1.01, signaling a bearish to neutral sentiment and reduced expectations of a breakout beyond resistance levels.

Volatility Check

The India VIX rose modestly by 1.35% on Tuesday, extending its recent upward move. However, it continues to hover near historically low levels, indicating that traders are maintaining a balanced and risk-managed approach. The low-volatility environment reflects a preference for hedged strategies amid mixed global cues and lingering macro uncertainty.

Market Outlook

The Nifty index continues to oscillate within the 25,000–25,300 range, lacking a decisive directional bias. The unwinding of put positions and simultaneous buildup of calls near at-the-money levels reflects a cautious undertone among market participants.

Yet, the index’s ability to sustain above its key short- and medium-term moving averages suggests that underlying support remains strong.

A breakout above the 25,300 resistance zone could trigger short covering and propel the index toward 25,500, while the 25,100–25,000 zone remains a vital support area that’s likely to absorb selling pressure.

Until a clear breakout emerges in either direction, a “range-trading” strategy remains advisable. Traders may continue to maintain a mild bullish bias above 25,000, while watching for a decisive close above 25,300 to confirm the next leg of the rally.

Key Takeaways

Bottom Line

The Nifty’s near-term trend remains neutral to mildly bullish, as it consolidates within a defined range. While selling pressure persists near higher levels, the index’s stability above 25,000 keeps the bulls hopeful. A clear breakout above 25,300 would confirm renewed momentum and set the stage for the next upward leg toward 25,500.