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Nifty

The Nifty50 hit the expected level of 26054 ahead of time as the breakout above 25700 accelerated on short covering mode. However, profit booking in the second half erased intraday gains, pulling the index below 25900 — the first such exhaustion sign since the rally commenced from its base of 24600. The zone between 26054–26334 may act as a distribution area, with RSI above 70 and ADX over 40 signaling an overbought setup. While no major trend reversal is visible, a brief consolidation could help form a higher base near 25740– 25650 closer towards its 5 DEMA level. On the derivatives front, the options base has shifted higher to 25500, showing firm support. Resistance remains near 26054, followed by 26334 for this month. A close below 25650 may trigger weakness, but the broader strategy stays buy on dips with targets at 26334–26500 as a caution zone and a stop loss at 25655. Only a close below the same could result into a failure of the major wave

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