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Nifty

Nifty continues to consolidate, oscillating within the 25800–25450 band as the ongoing volatility diffusion phase keeps price action confined to a narrow range. From a technical perspective, the earlier Piercing Line formation on the daily chart has witnessed healthy bullish follow-through, with the index holding comfortably above the 24700 demand zone and reclaiming 25700 on a closing basis—a positive sign of base formation. This reinforces the Budget-day low as a near-term trading floor, with the move extending beyond a mere intraday bounce, supported by strong buying on US-deal optimism and a firmer rupee. The strong reversal candle followed by sustained buying continues to favour a short-covering-led advance, keeping the potential for further upside intact. On the derivatives front, heavy put open interest at 25000 establishes it as a key reference support, while 25800–26000 call writers remain vulnerable to a squeeze if the index sustains above this band. Investors can stay constructive on the medium-term trend, using the 25,000–24,700 zone as an accumulation area. Traders should avoid chasing gap-ups or gap-downs and instead look to buy intraday declines, while closely monitoring sustainability above 25585–25600 to confirm a durable uptrend rather than a relief rally.

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