The Nifty 50 has been moving sideways between 25,750 and 26,230 since mid‑November, but it stays safely above a key support level of 25,970, keeping the overall uptrend intact.
What the Range Means
Even though the index isn’t making new highs each day, staying above 25,970 shows the market still has strength. Recent buying at the open pushed the Nifty past 26,200 and it closed above 26,100, confirming the bullish bias.
Where the Nifty Could Go
Technical indicators suggest the next upside targets could be around 26,350 and 26,500, as long as the 25,970 support holds.
Trading Idea: Buy‑on‑Dip
If you prefer a straightforward approach, consider buying Nifty when it pulls back toward the lower end of the range. This lets you join the upside while limiting risk.
Option Strategy: Bull Call Spread
A bull call spread lets you profit from a rise while capping both potential loss and gain.
- Buy a call option near the current Nifty level (at‑the‑money or slightly in‑the‑money).
- Sell a higher‑strike call with the same expiration (out‑of‑the‑money).
- The net cost is lower than buying a single call, and the maximum loss is limited to that net cost.
This strategy works well when you expect the index to move up but want to protect yourself if it stalls.
Bottom Line
Keep an eye on the 25,970 level. If it stays intact, the Nifty is likely to test the 26,350‑26,500 zone, and both buying on dips and a bull call spread can be useful ways to participate.
Remember, this is just an opinion, not a prediction. Do your own research before trading.