Nifty Breaks Past 25,500: SEBI RAs Highlight Key Support Zones

The Nifty 50 registered a modest gain on July 8, breaking out of the recent consolidation zone and comfortably closing above the crucial 25,500 mark. The GIFT Nifty suggests a cautious start for Wednesday’s trade. 

SEBI-registered analyst Mayank Singh Chandel noted that Tuesday’s market move was a positive sign for short-term bulls. Despite global jitters arising from fresh tariff threats by US President Donald Trump, the Indian market showed strong resilience, underpinned by domestic optimism and sustained buying interest, he added.

On the technical charts, Nifty’s price action confirmed a bullish flag breakout, indicating continuation of the existing uptrend. The index respected its short-term support zone of 25,400–25,300, bouncing strongly in the final hour of trade and ending near day’s high. 

Its Relative Strength Index (RSI) remained firm at 62.53 with a positive crossover, reinforcing bullish momentum. While the volatility indicator, India VIX dropped further by 2.91% to 12.20, the lowest since October 2024. Chandel said this added comfort for long-side participants. 

He pegged Nifty support between 25,400 and 25,300, with resistance at 25,670, 25,800, and 26,000. Chandel believes that if the index sustains above 25,670, it could trigger a move toward 25,800 and higher in the near term, while any breach below 25,300 may lead to mild profit-taking. 

Options data shows that we saw maximum Call Open Interest at 26,000 (indicating a key resistance level), and maximum Put Open Interest at 25,400 (which is the immediate support). He added that this OI setup indicated a bullish bias as long as Nifty holds above 25,400, with 26,000 emerging as a potential target in the upcoming sessions. 

Chandel concluded that as long as Nifty sustains above the 25,400–25,300 support band, the bulls are in control. A move beyond 25,670 will likely accelerate the rally towards 25,800 and then 26,000. He advised traders to maintain a positive bias but remain cautious around areas of resistance.

Bharat Sharma of Stockace Financial Services observed that Tuesday’s trading chart reflected a positive market sentiment. Their positional stance remained unchanged. 

For intraday trading, he sees immediate support now shifting to 25,500-25,480. If the index falls below this level again, it could test lower supports at 25,430, 25,380, and 25,300, although there is a lower probability of such a scenario. 

On the upside, 25,550 is considered the immediate resistance. The next upward move is expected to occur above this level, targeting 25,600-25,650, and potentially higher. Sharma concluded that the market is on track to test new all-time highs in the coming weeks; upside barriers are minimal, but price action could show zigzag movements to some extent.

Meanwhile, Harika Enjamuri highlighted that the Nifty is hovering around the key resistance zone of 25,523–25,550. She believes that a sustained move above this range may lead to a short-term rally toward 25,600–25,649. However, with RSI near overbought levels, any failure to hold above 25,438 could prompt mild profit booking toward 25,370–25,335. While the broader structure remained bullish, she advised traders to stay selective and watch for confirmation.

Front Wave Research noted that the market is showing early signs of momentum after a prolonged period of consolidation. On the global front, they await developments on the US-India trade deal proposal for a firm confirmation, adding that a positive signal could clear the air and remove any near-term volatility.

The Nifty index has gained 8% year-to-date (YTD).

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