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Nifty

Nifty started the week on a weak footing, sliding toward the 25900 support zone and erasing gains from the previous three sessions. The decline was sharp and forced traders to unwind long positions. Price action remained weak throughout the day, with no meaningful pullback, and the index ultimately closed near its 20-DEMA support at 25940.Trend strength indicators aligned with the price weakness-RSI slipped toward the neutral 50 mark, while ADX softened to 16, reflecting a decline in directional strength. The index continues to hold a strong base near 25900, but this level is once again being tested. A follow-through close below 25900 could deteriorate sentiment further and drag the index toward levels below 25700. On the upside, only a sustained move above 26050 would revive bullish momentum and help the index re-establish its upward trajectory toward 26330-26500. Weekly expiry options data indicates firm boundaries at 26000 (resistance) and 25800 (support), with a median positioning near 25950. The PCR OI at 1.09 is not yet in oversold territory, leaving scope for additional downside if selling pressure persists during the day. Traders should stay cautious and consider a long–short combination approach until the index stabilizes above 26050. Existing long positions may be held as long as 25940 is protected on a closing basis, but fresh averaging should be avoided until clear directional strength emerges above 26050-26200.

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