Stocktwits - Indian equity markets opened the new week on a subdued note. The Nifty 50 slipped on Monday, failing once again to decisively breach the psychological 25,000 mark.
This marks the second straight session of sideways and choppy movement, indicating that the benchmark index may enter a much-needed consolidation phase after a strong recent rally.
As expiry nears and options data tighten around key levels, analysts caution that a breakout or breakdown from the current range could set the stage for a bigger move.
According to SEBI-registered analyst Mayank Singh Chandel, the daily chart has formed a bearish inside bar with a modest upper shadow, signalling indecision and mild profit-taking at elevated levels.
Chandel identifies immediate resistance at 25,000 and 25,200, which have consistently attracted selling pressure in recent sessions.
On the downside, 24,800 is a crucial support zone; a breach below this level could trigger a deeper correction toward 24,500–24,400.
Despite the indecisiveness, the Relative Strength Index (RSI) at 63.6 still indicates bullish undercurrents.
In the derivatives space, call open interest is highest at 25,000, followed by 25,200 and 25,500, reinforcing the resistance zone.
However, strong put writing between 24,700 and 24,900 shows that bulls are defending the lower end aggressively.
For trading strategy, Chandel advises intraday traders to wait for a clear breakout or breakdown from the 24,800–25,200 range before taking directional positions.
He suggests swing traders should monitor for a daily close above 25,200 to participate in the next leg of the rally. At the same time, option writers may focus on straddles or strangles around the 25,000 mark until a range expansion occurs.
Analyst Bharat Sharma echoes a similar view. He notes that the Nifty failed to hold above 25,000 and has dipped below the 20- and 50-EMAs on the 15-minute chart — a sign of short-term weakness.
Despite this, Sharma maintains a positional bullish stance as long as Nifty holds above 24,800 on a closing basis. Should the index close below 24,800, a fresh round of analysis would be warranted to reassess the outlook.
Looking ahead, Sharma identifies a series of resistances at 25,000, 25,200, 25,300, and 25,500, all the way up to 26,000. A clear move beyond 25,100 could unlock upside momentum, but the index must reclaim the 50-EMA near 24,960 for now.
On the downside, immediate support lies between 24,920 and 24,900, followed by stronger support at the 100-EMA around 24,870. The key level to watch remains 24,800—a breakdown here would likely usher in renewed bearish pressure.