Despite the positive tone, the Nifty remained largely range-bound during the session. Market participants are watching closely to assess whether the ongoing rally has further legs or if the index is likely to consolidate at current levels. Technical experts say that while momentum remains positive, near-term movements could stay choppy due to overbought conditions.
Commenting on the market structure, Rajesh Bhosale from Angel One highlighted that last week’s sharp gap-up move set the tone for the current trend. He said, “So, last Tuesday we saw a strong gap-up opening of more than around 1,200 points and post that, as you highlighted, the index has been trading in a range. But Nifty held onto its key moving averages and if we see last week’s candlestick formation, it was a very strong engulfing pattern.”
He added that Monday’s action further reinforced the bullish undertone. “And today we are seeing a follow-up with a strong bullish gap. So, the direction of the gap itself indicates that the market is in a strong uptrend, but due to indicators being in an overbought zone, we are seeing choppy upside.”
According to Bhosale, the broader strategy should remain tilted towards buying on declines. “So, our strategy will remain to maintain a buy approach where any dip should be considered as a buying opportunity.”
He identified immediate technical levels for traders to monitor closely. “Today’s bullish gap left around 25,700 seems to be the immediate support and in the coming session, that is tomorrow for the weekly expiry, we expect Nifty to move towards the levels of 26,000 to 26,100.”
Summing up his outlook, Bhosale maintained a positive bias for the index. “So, bias is positive. Consider dips towards 25,700 as a buying opportunity, expecting levels of around 26,000 to 26,100 levels.”Market participants will now watch global cues and weekly expiry dynamics for further direction, with technical indicators suggesting that while the trend remains upward, short-term volatility could persist.
