Market Overview
Indian equity markets extended their winning streak on Tuesday, closing higher for the second consecutive session amid improving investor sentiment and stability in global cues.
The Nifty 50 advanced 121 points to settle at 25,695, while the Bank Nifty climbed 261 points to close at 58,138. The day witnessed healthy buying across Banking, IT, and Pharma counters, while FMCG and Auto saw selective profit booking.
Broader markets outperformed benchmarks — the Nifty Midcap 100 gained 0.72% and the Smallcap 100 rose 0.61%, highlighting renewed strength in the broader universe.
Setup 1 — Nifty 50: Key Resistance & Support Levels
Nifty Close: 25,695
- Resistance (Pivot Points): 25,722 / 25,785 / 25,887
- Support (Pivot Points): 25,518 / 25,455 / 25,353
Market View:
The Nifty 50 formed a bullish candle with a long upper shadow on the daily charts, showing sustained buying interest at lower zones. The index now trades above all major moving averages, signaling an improving structure.
The RSI (56.07) indicates strengthening momentum, while the Stochastic RSI maintained a positive crossover, confirming a shift in bias toward bulls. The MACD continues to stay below its reference line, but fading negative momentum suggests early signs of recovery.
Outlook: Sustaining above 25,700 could push the index toward 25,850–26,000. On the downside, 25,450 remains key short-term support.
Setup 2 — Bank Nifty: Key Resistance & Support Levels
Bank Nifty Close: 58,138
- Resistance (Pivot Points): 58,200 / 58,340 / 58,566
- Support (Pivot Points): 57,747 / 57,607 / 57,380
- Resistance (Fibonacci Retracement): 58,735 / 60,142
- Support (Fibonacci Retracement): 57,394 / 56,662
Market View:
The Bank Nifty extended gains for the third consecutive session, forming a bullish candle with a long lower shadow — a sign of buying from lower levels.
Momentum indicators reflect growing strength: RSI improved to 62.95, while Stochastic RSI maintained a bullish crossover. The MACD still trades below the signal line, but fading weakness in the histogram confirms improving market tone.
Outlook: Bank Nifty remains bullish with a potential upside towards 58,700–59,000, while support holds near 57,400.
Setup 3 — Nifty Options Data
Call Option Data (CE):
- Maximum Call Open Interest: 26,000 strike (1.62 crore contracts) — key resistance zone.
- Next Resistance Strikes: 25,900 (1.29 crore contracts) / 26,100 (1.25 crore contracts).
- Maximum Call Writing: Seen at 25,900 (added 32.6 lakh contracts), followed by 26,000 (added 29.5 lakh contracts).
- Maximum Call Unwinding: Observed at 25,600 strike (shed 10.8 lakh contracts).
Put Option Data (PE):
- Maximum Put Open Interest: 25,500 strike (1.48 crore contracts) — major support level.
- Next Support Strikes: 25,600 (1.02 crore contracts) / 25,400 (0.97 crore contracts).
- Maximum Put Writing: Seen at 25,500 (added 44.3 lakh contracts), followed by 25,400 (added 36.9 lakh contracts).
- Maximum Put Unwinding: Seen at 26,000 (shed 8.5 lakh contracts).
Interpretation:
Nifty’s option data suggests a tight trading band between 25,500–26,000, indicating consolidation before a possible breakout.
Setup 4 — Bank Nifty Options Data
Call Option Data (CE):
- Maximum Call Open Interest: 58,500 strike (15.6 lakh contracts) — short-term resistance.
- Next Resistance Strikes: 59,000 (13.2 lakh contracts) / 58,200 (10.8 lakh contracts).
- Maximum Call Writing: Seen at 58,500 (added 3.5 lakh contracts), followed by 58,200 (added 2.9 lakh contracts).
- Maximum Call Unwinding: Observed at 57,800 (shed 1.6 lakh contracts).
Put Option Data (PE):
- Maximum Put Open Interest: 58,000 strike (16.7 lakh contracts) — strong support.
- Next Support Strikes: 57,500 (12.4 lakh contracts) / 57,000 (10.8 lakh contracts).
- Maximum Put Writing: Seen at 58,000 (added 4.1 lakh contracts), followed by 57,700 (added 2.7 lakh contracts).
- Maximum Put Unwinding: Seen at 56,800 strike (shed 90,000 contracts).
Interpretation:
Bank Nifty’s option activity reflects bullish bias with 58,000 acting as a firm base and potential resistance near 58,600.
Setup 5 — Sectoral Overview
| Sector | Sentiment | Commentary |
|---|---|---|
| Banking & Financials | Bullish | Strong buying seen; momentum improving across private banks. |
| IT | Positive | FII buying supports the uptrend; select midcaps outperform. |
| Pharma | Positive | Defensive strength continues amid global uncertainty. |
| FMCG | Neutral | Range-bound after mild profit booking. |
| Metals | Bullish | Global commodity strength supports renewed buying interest. |
Setup 6 — India VIX
The India VIX, which gauges near-term market volatility, fell slightly to 11.82, maintaining calm conditions.
As long as the volatility index stays below the 13–14 zone, markets are likely to remain stable with a bullish undertone.
Setup 7 — Strategy for the Day by Dhwani Patel
- Maintain a buy-on-dips approach above 25,500.
- Avoid aggressive shorts unless Nifty slips below 25,400.
- Watch for breakout above 25,700 for momentum trades.
- In Bank Nifty, stay long above 58,000 with a target of 58,700–58,900.
Key Takeaways
| Index | Bias | Bullish Above | Bearish Below | Range |
|---|---|---|---|---|
| Nifty 50 | Positive | 25,700 | 25,450 | 25,450–25,900 |
| Bank Nifty | Bullish | 58,000 | 57,400 | 57,400–58,800 |
Dhwani Patel’s Market Insight
“Momentum is gradually shifting back to the bulls as markets reclaim key averages. Traders should focus on breakout confirmation over anticipation and ride the trend with disciplined stop-loss placement.”
Disclosure & Disclaimer: Dhwani Patel (SEBI Registration No: INH200008608) is a SEBI-registered Research Analyst. This report is intended for educational and informational purposes only and should not be construed as investment advice. Trading and investing in securities involve market risks; always consult a certified financial advisor before taking any investment decisions.
