IGI Logo

Yesterday’s rebound from the 50-DEMA support provided some relief as the index regained momentum, although it still closed below the 5-DEMA level of 25905. A decisive breakthrough above 25900 would help strengthen the base near 25,740, but a close above 26050 remains essential for a meaningful revival of directional strength. Trend indicators continue to reflect a softening structure—RSI remains below the neutral 50 mark, and ADX has eased to 16, indicating a lack of strong trend direction. A sustained move above 26050 could shift sentiment positively and open the path toward 26330. On the other hand, a dip below 25740 would expose the downside zone toward 25,440. Only a sustained move above 26050 would re-establish bullish momentum and realign the index into a positive structure. Options data indicates firm boundaries at 26000 (resistance) and 25800 (support), with notable positioning around 25950. The PCR OI at 1.03 suggests the market is not in oversold territory yet, leaving room for further downside if selling pressure increases. Traders should remain cautious and consider a long–short combination strategy until the index stabilizes above 26050. Fresh averaging is best avoided until clearer directional strength emerges beyond this threshold.

Please refer disclaimer at https://www.tradebulls.in/disclaimer

SEBI Registration number is INZ000171838