The Nifty index is managing to hold above the 25,930 mark in early trade, but the focus in the derivatives market (F&O) is now on whether the benchmark can break out of its persistent congestion zone.
Critical Resistance Near 26,000
The index hit an intraday high of 25,980, inching close to Friday’s high of 25,940. Over the last few sessions, every attempt toward 26,000–26,104 has attracted selling pressure, signaling a strong supply zone at the psychological 26,000 mark.
Analysts believe a decisive breakout above this region is crucial for the next leg of the rally in the frontline index.
What Will Drive the Breakout?
With Bank Nifty outperforming and scaling a fresh record high, attention is now shifting to two heavyweight contributors:
- Nifty IT Index
- Reliance Industries
Both hold significant weight in the Nifty, and any positive momentum in these sectors could be the catalyst for a sustained move beyond the current range.
At the moment, however:
- The IT Index is down 0.25%
- Reliance Industries is trading 0.5% lower
A turnaround in these counters could help the Nifty break past the supply zone.
F&O Setup: Call Writers Active at 26,000
In the derivatives segment, traders remain cautious:
- Heavy call writing is seen at the 26,000 strike, with nearly 3 crore shares in open interest.
- This suggests strong resistance ahead of tomorrow’s expiry.
- The 26,000 call premium at ₹58 implies that traders expect supply to remain active up to around 26,050–26,650.
Until major index movers show strength, the market may continue to consolidate within this band.
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