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Nifty

Nifty remains structurally strong as it continues to hold above its 5 DEMA support despite muted momentum and repeated Doji formations, which signal consolidation rather than weakness. Persistent demand-led buying and ongoing short covering, supported by easing volatility, are keeping the upside bias intact. The index has successfully defended the sharp gap-up at 25,888 and is consolidating near the 25,900 zone, indicating acceptance at higher levels. Options data points to the potential for a follow-through move above 26,000, which could trigger a fresh short-covering rally given vulnerable call position between 25800–26000. Near-term consolidation is expected to shift higher within the 25450–25800 band, while strong put OI at 25000 provides a solid base for the February series. The medium-term trend remains constructive, with corrective dips towards 25700 offering accumulation opportunities. A sustained hold above 25585–25600 confirms trend continuation rather than a temporary relief bounce. Hence, traders are advised to add long positions as long as this zone holds. A decisive breach above 26000 is likely to provide further thrust to the ongoing up move, with the index having the potential to extend towards 26400 within the current series.

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