Stock Market: Volatility Looms as Angel Flags Buy-on-Dips Strategy

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Nifty Technical Outlook Signals Positive Bias as Option Chain Hints at Volatility Surge

By S. JHA

Mumbai, February 11, 2026 — Indian equity benchmarks ended marginally higher on Tuesday in a muted weekly expiry session, with technical indicators pointing to underlying strength despite lacklustre intraday momentum, according to Angel One’s latest Chart Insight.

Nifty opened on a positive note but traded in a narrow band throughout the day, eventually settling just above the 25,900 mark with gains of 0.26%. “On the weekly expiry day, the index settled near its opening levels, reflecting subdued intraday participation,” Angel One noted.

Auto Index Breakout Signals Outperformance

The standout performer was Nifty Auto, which witnessed broad-based buying and confirmed a bullish range breakout. According to Angel One, the breakout signals a resumption of the primary uptrend, with further outperformance likely in the near term.

Asian cues also supported sentiment, with Japan’s Nikkei surging over 2% after a sharp 4% rally earlier this week, reinforcing global risk appetite.

Technical Setup: Gradual Climb, But Momentum Missing

Technically, Nifty continues to edge higher, forming back-to-back small-body candles on the daily chart — a sign of consolidation after last Tuesday’s sharp rally. Intraday movements remain sluggish, with most price action concentrated around opening trades.

Angel One maintains a constructive stance: “Considering the strong weekly structure formed last week and prices trading above key moving averages, we maintain a positive bias.” However, the brokerage cautions traders to prefer a buy-on-dips approach and book profits at higher levels until stronger follow-through emerges.

Option Chain Flags Volatility Risk

For the upcoming weekly expiry, significant open interest accumulation at the 26,000 call and put strikes suggests a potential surge in volatility. A decisive move beyond this level could trigger sharp directional action.

Bank Nifty Forms Inside Bar

Bank Nifty mirrored the subdued tone, oscillating within a tight range before closing at 60,626, down 0.07%. The formation of an inside bar indicates consolidation, with traders awaiting a breakout trigger.

With indices holding firm but momentum thin, the market appears coiled — and 26,000 could be the next battleground.

(Disclaimer: This article recommends no trades in the stock market.)