Nifty’s Marubozu Breakout Signals Robust Uptrend; Support Shifts Higher

Market Overview

The Nifty index delivered a decisive breakout on Tuesday, closing near its eight-week high and firmly shifting its primary trend toward bullish territory. A consistent pattern of higher lows continues to reinforce the robust technical structure, signaling that buyers remain firmly in control.

During the session, Nifty maintained strong upward momentum, piercing through its earlier swing high — a level that had served as stiff resistance but now transitions into reliable support. On the daily chart, the index registered a sharp bullish marubozu candlestick, confirming a breakout above prior resistance zones.

This price action highlights a classic technical dynamic — resistances turning into supports — with any corrective pullbacks expected to offer fresh accumulation opportunities.

 Technical Snapshot

• Closing Level: 25,239.10 (+169.90 points)
  
  
• Candle Pattern: Bullish marubozu breakout
  
  
• RSI: Holding strong above 63, indicating steady bullish momentum
  
  
• Support Zone: 25,100–25,000
  
  
• Resistance Levels: 25,330 and 25,350
  
  
• Outlook: As long as the 25,000 base holds, a buy-on-dips strategy remains constructive.
  
  

 Derivatives Insights

• Put Writers: Retain a clear edge, signaling strong conviction at support levels.
  
  
• Open Interest (OI):
  
  
  • 25,500 strike: Heavy call OI at 33.50 lakh contracts → Strong resistance ceiling
    
    
  • 25,200 strike: Highest put OI at 57.01 lakh contracts → Solid support base
    
    
• Fresh Put Writing: Reflects limited downside conviction.
  
  
• PCR (Put-Call Ratio): Climbed to 1.30 from 1.03, pointing to a positive undertone.
  
  

The shift of call writing toward higher out-of-the-money strikes further confirms the market’s bullish intent.

 Volatility Check

• India VIX: Slipped 1.20% to 10.27
  
  
• Interpretation: Subdued volatility suggests calm consolidation rather than panic-driven moves, reflecting measured optimism among participants.
  
  

 Market Outlook

Nifty’s breakout above its previous swing high, alongside its advance to an eight-week peak, underscores the potential for sustained upside momentum.

• Bullish Setup Drivers:
  
  
  • Call writers shifting to higher strikes
    
    
  • Put writers defending at-the-money levels
    
    
  • RSI strength above 63
    
    
  • Higher-low formations intact
    
    

 Key Levels to Watch:

• Sustaining above 25,200 keeps the bullish momentum intact.
  
  
• Dips toward 25,100–25,000 are likely to attract buyers.
  
  
• A decisive move above 25,330 could open the path toward 25,500.
  
  

Until then, the broader structure remains firmly bullish, with buy-on-dips strategies favored as long as the 25,000 base support holds strong.