Derivatives Analysis by SAMCO Securities
by Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities
🕗 Last Update: 12 February 2026, 8.00 AM
Nifty Consolidates Below 26,000 as Bulls Defend Crucial Support Zone
Market Recap
Nifty index continued to exhibit subdued momentum, characterised by sharp gap-up openings followed by tight consolidation for the remainder of the session. While decisive directional follow-through has remained elusive, the index has consistently defended its critical support zone, holding firmly above its gap boundaries, which have now evolved into immediate support levels. The Tuesday session underscored a clear sideways bias. After opening with a gap-up, the index managed to protect its gains and held above its support zone, signalling active buying interest on declines. The evolving base formation and continuity in price behaviour suggest that bulls are gradually regaining control. The index closed higher by 67.85 points at 25,935.15, reinforcing the prevailing buy-on-dips approach.
The resilience of the index and ability to absorb supply at lower levels have gradually shifted the near-term bias in favour of the bulls. A robust base is developing in the 25,700–25,600 region, which coincides with the 50-day moving average (DMA) and continues to act as a key line of defence for the bulls. The index is currently hovering close to the psychologically important 26,000 mark, and a sustained move above this level could validate follow-through buying.
Overall, the prevailing price action highlights the strength of underlying demand and improves the probability of a near-term upside breakout. Structurally, the formation of higher lows while trading above key moving averages reflects ongoing accumulation at lower levels. A decisive breakout beyond 26,000 could trigger short covering and attract fresh buying interest, while sustaining above the 25,600–25,700 support band remains crucial to preserve the bullish structure.
Technical View
From a technical perspective, the index appears to be in a continuation phase, though the formation of a doji candlestick reflects limited directional movement. Despite this, the broader price structure points toward a gradual improvement in bullish momentum, with corrective declines being consistently absorbed. This improving price behaviour strengthens the case for maintaining a buy-on-dips strategy. A sustained breakout above the 26,000 level could inject fresh momentum into the rally.
Importantly, the 25,600–25,700 zone—earlier a strong supply area—has now transitioned into a critical demand pocket. This region also aligns with the 0.618 Fibonacci retracement level and key moving averages, creating a strong confluence zone and an important inflection point for the index. Momentum indicators further support this outlook, with the Relative Strength Index (RSI) hovering near the 60 mark. It signals easing of selling pressure and a gradual weakening of bearish dominance. A clean move above 26,000 could accelerate buying interest, while any corrective dips toward the 25,600–25,700 range are likely to be viewed as accumulation opportunities.
Derivatives Snapshot
Derivatives data reflects an optimistic and gradually improving undertone. Call writers have aggressively added fresh positions at at-the-money and nearby strikes, thereby capping the immediate upside. Conversely, put writers have begun building positions at lower strikes, indicating expectations of a range-bound market with clearly defined support levels. A substantial open interest build-up of around 59.05 lakh contracts at the 26,000 call strike highlights this level as a formidable resistance.
Meanwhile, the addition of nearly 38.70 lakh put contracts at the 25,500 strike strengthens its role as an immediate support. The Put–Call Ratio (PCR) remains in a positive zone at 1.02, reflecting improving sentiment and the relative dominance of put writers.
Market Outlook
Nifty index is showing clear signs of bullish stabilisation by sustaining above its short-term moving averages and building a solid base in the 25,600–25,700 zone. Despite repeated gap-up openings, the index has managed to hold its ground, with intraday declines being swiftly absorbed—an indication of renewed buying interest at lower levels. A sustained follow-through above the 26,000 mark could pave the way for a sharper short-covering rally.
On the downside, any pullback toward the 25,600–25,700 band is expected to attract strong buying interest and encourage accumulation. As long as these support levels remain intact, the buy-on-dips strategy is likely to remain favourable. Traders are advised to stay selective, disciplined, and cautious while navigating the evolving market structure.
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