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Fresh breakout momentum was evident in the previous sessions as the Nifty50 surged past the 25500 zone and closed decisively above the 25700 resistance, confirming a strong price breakout. This firm close reinforces bullish conviction for a potential move toward the 26000 zone. Both trend strength indicators continue to point higher — the ADX has climbed to around 35, indicating improving directional momentum, while the RSI, though in the overbought zone above 70, shows no signs of divergence or fatigue. A sustained move above 25700 has triggered further short covering on rising volumes, which could amplify the ongoing short squeeze and open the path toward the 26000–26500 range. On the derivatives front, the options base has shifted higher from 25000 to 25500, indicating stronger support, while resistance is now seen near 26054 — a key congestion zone — followed by the next wave target around 26334. Some profit booking could emerge if the move unfolds swiftly within this week. A close above 25500 has reaffirmed the bullish structure, while the breakout follow-through above 25700 strengthens the medium-term uptrend. The strategy remains to buy on dips, with a momentum-based stop loss below 25,655 and upside targets at 26000–26500 in the near term.

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