Nifty 50 at a Critical Juncture – Breakdown or Bounce Ahead?Technical Overview – Trendline Test in Action
After breaking out of a well-defined falling wedge pattern in April 2025, the Nifty 50 had been respecting an ascending support trendline, offering steady higher lows and consistent bullish structure.
However, in the most recent session, price closed just below this key trendline at 24,926.80, with volume slightly elevated — a signal that the bulls are losing control unless support is reclaimed quickly.
Key Technical Levels
Immediate Resistance: 25,100–25,250
Trendline Support (Broken): ~24,950
Major Demand Zone: 24,300–24,600
Critical Breakdown Level: 24,850
Options Chain Snapshot – What Smart Money Is Signaling
Expiry: 31st July 2025
Spot: 24,935.50
Futures: 24,956.50
🔸 Call Writers in Control
Significant OI at 25,000 CE (140.7K) and 24,950 CE (38K)
Call unwinding seen from 24,700 to 25,200, suggesting profit booking or reduced bullish conviction
IVs remain compressed across ATM and OTM calls → calm surface, but pressure building
🔹 Put Writers Still Active
24,900 PE (101K OI, +59.5K) and 25,000 PE (143K OI, +40.9K) are heavily defended
PCR remains above 1 for 24,950–25,000 zone → put writers betting on expiry support
Rising OI at 24,800 PE (84K) also shows growing downside hedges
Data vs. Price – A Divergence Worth Watching
While options data suggests bulls are trying to defend 24,900–25,000 with heavy put writing, price action tells a different story. A clean break of the trendline and a lower daily close below 24,850 would shift momentum in favor of the bears.
📉 Breakdown Confirmation:
Sustained move below 24,850
Rising call OI at 25,000+
Unwinding of 24,900 PE and 24,800 PE
Pickup in IV and red candle with volume
Strategy Ideas (Educational Purpose Only)
🟩 Bullish Scenario
Bias: Long above trendline reclaim
Entry: On breakout above 25,050
Stop Loss: Below 24,850
Target: 25,300 and then 25,500
🟥 Bearish Scenario
Bias: Short below confirmed breakdown
Entry: Below 24,850
Stop Loss: Above 25,050
Target: 24,600, possibly extending to 24,300
🟨 Neutral / Non-Directional View
Bias: Range-bound / IV crush play
Strategy: Short Straddle using 24,950 CE + 24,950 PE
Hedge Zone: Manage risk beyond ±150 points
Goal: Capture premium decay as expiry nears
🧭 Conclusion – Prepare, Don’t Predict
The Nifty 50 is sitting at a crucial inflection point — where structure meets sentiment. While option writers continue to show faith in the 24,900–25,000 zone, a clean break below the recent support could trigger swift downside toward the 24,400 zone.
In times like these, reacting to confirmation is smarter than pre-empting moves. Watch price, volume, and open interest shifts closely in the coming sessions.
