IGI Logo

Nifty

Occurrence of multiple reversal patterns, supported by healthy bullish follow-through, enabled the index to defend the 24700–25040 demand zone and close decisively above the 25700 50-DEMA resistance, signalling a strong base formation. Persistent demand-led buying was evident through intraday rebounds throughout the week; despite narrow-bodied candles, sustained short covering has kept the upside bias intact amid easing volatility. On the daily scale, the index maintained its sharp gap-up opening at 25888 throughout the session, though momentum cooled as it consolidated near the 25900 zone without significant follow-through. Options data suggests the possibility of a follow-through move above 26000 in the coming sessions, potentially triggering another round of short covering. In the near term, consolidation is expected to shift higher within the 25450–25800 range, with heavy put open interest at 25,000 reinforcing strong base support for the February series. Meanwhile, call writers positioned at 25800–26000 remain vulnerable to a squeeze on any sustained breakout. The medium-term trend remains constructive; hence, any corrective dips towards the 25500 zone should be viewed as accumulation opportunities for investors. Traders are advised to buy intraday declines, avoid chasing gaps, and watch for sustained holds above 25585–25600 to confirm a durable uptrend rather than a mere relief rally

Please refer disclaimer at https://www.tradebulls.in/disclaimer

SEBI Registration number is INZ000171838