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Nifty

Nifty 50 maintained its bullish undertone despite a subdued start and ended the session on a firmly footing above the crucial 25700 level and extending its rebound for a second consecutive day. Earlier in the week, the index had successfully defended the key pivot near 25400 with a sharp intraday recovery, forming a clear Bullish Engulfing pattern on the daily chart. Tuesday’s follow-through price action has strengthened the credibility of this signal, confirming 25400 as a strong demand base. Yesterday’s recovery move above 25700 was supported by healthy market breadth, with advances clearly outpacing declines, and leadership emerging from PSU banks, IT, auto stocks and select index heavyweights. This reflects constructive sectoral rotation rather than a narrow shortcovering rally, lending stability to the ongoing up move. Nifty now faces an immediate resistance zone at 25850, followed by a stronger supply band in the 25900–26000 region, which could limit near-term gains without a visible pick-up in volumes and fresh long build-up. As long as the index sustains above 25400 and more tactically above 25640 on an intraday basis; the bullish structure remains intact. A decisive break down below 25400 would negate the positive setup and call for trimming trading longs. Fresh aggressive long positions are better considered only on a breakout above 25850 and a sustained close above 26000, which would signal absorption of overhead supply and open the door for an extension toward 26300–26400 in the current series.

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