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Nifty

Nifty staged a sharp rebound of nearly 900–1,000 points from its Budget-day low, validating the short-squeeze setup. Technically, the earlier Piercing Line formation on the daily chart has seen bullish follow-through, with the index holding well above the 24700 demand zone and reclaiming 25,700 on a closing basis. This confirms the Budget-day low as a near-term trading floor, with the move extending beyond a mere intraday bounce amid 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 scope for further upside alive. Options data show heavy put open interest at 25000, establishing it as a key reference support, while 26000–25800 call writers remain vulnerable to a squeeze if the index sustains above this band. Investors can remain constructive on the medium-term trend, using the 25,000–24,700 zone as an accumulation area. Traders should avoid chasing gap-ups and instead buy intraday declines, closely tracking sustainability above 25585– 25600 to confirm a durable uptrend rather than a relief rally.

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