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Nifty

Nifty continued to oscillate within a progressing Channel Pattern formation. Yesterday’s uptick from the pattern base also appears to be part of an ongoing inverse head & shoulders formation, with its neckline positioned near 26050. On the daily chart, the index managed to hold above its 20-DEMA for the second consecutive session, reaffirming this zone as the immediate demand area. A close below this level, however, may weaken the short-term bullish bias and expose the index to further downside toward the 50-DEMA at 25680, or potentially lower. The recent appearance of a Spike candlestick formation offers a ray of hope for the bulls, signalling a possible rebound toward the 26330 zone. With the index hovering near the lower end of its broader range of 26330–25940, traders are advised to remain cautious and consider adding long positions only after a decisive breach above 26110. The 26100 zone is expected to provide favourable opportunities to accumulate fresh longs. On the upside, a sustained move above 26330 is likely to trigger a strong bullish thrust, helping the index maintain a higher base near the 26000 mark. Options data for the December series indicates a firm put base in the 26000–25800 range, while resistance is gradually shifting toward 26500, reflecting improving underlying sentiment. Overall, Traders may continue to hold long positions as long as 25940 remains intact, with near-term upside targets placed at 26330 and 26500 for the week.

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