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Nifty

Index faced supply pressure near the 26330 resistance and retraced toward its 5-DEMA support around 26190. The day’s close was largely inconsequential, with no visible price reversal pattern. However, last week’s close near 26330 provided price confirmation, while improving relative strength had already been signalling an emerging bullish setup. The daily RSI is now forming a trending structure, ADX remains well below the 25 threshold, and the expanding options band suggests early-stage momentum build-up. The filling of the Breakaway Gap near 26000, along with a ‘Morning Star’ formation, reinforces the improving trend and confirms a higher base shift from 25740 to 26000. Options data shows confident writing at 26200, and the upper range may extend further if the 26300 zone sees unwinding early in the week amid expiry-related pressures. A sustained move above 26330 would significantly strengthen the uptrend and open upside potential toward 26920. On the downside, the 26000–26050 zone remains crucial to maintain trend strength; a break below 25940 would weaken the structure and invite corrective pressure. Given the current technical setup, traders may consider adding aggressive fresh positions as long as the index sustains above 26050, with periodic reviews and profit-booking zones placed between 26550 and 26920 for the current series.

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