The index has successfully closed the recent gap area near 25700 and managed to hold above its 5-DEMA support - Tradebulls Securities Pvt Ltd
NIFTY
The index has successfully closed the recent gap area near 25700 and managed to hold above its 5-DEMA support, reinforcing near-term stability.
The formation of multiple narrow-range candlesticks reflects a lack of strong conviction on either side, suggesting consolidation rather than weakness, as demand-based buying remains visible while the 26000 level continues to act as an immediate hurdle. Structurally, Nifty remains strong, sustaining above its short-term averages despite muted momentum and repeated Doji formations. Options data indicates the possibility of a follow-through move above 26000, which could trigger fresh short-covering given the vulnerable call positioning in the 25800–26000 zone.
Near-term consolidation is expected to shift higher within the 25700–26000 range, 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 25560 confirms trend continuation rather than a mere relief bounce. Traders may continue to add long positions as long as the 25560–25700 zone holds. A decisive breakout above 26000 could provide further thrust, with the index having the potential to extend towards 26400 within the current series
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