The Nifty index has stabilized after rebounding from the 25,700 zone, with the broader chart structure of higher tops and higher bottoms still intact. However, the index is entering a consolidation phase near recent highs, with buying emerging on dips but resistance capping upside.
The 26,050–26,300 band remains a key hurdle. A decisive move above this zone could open the door to a rally towards 26,350–26,500. Immediate support is placed at 25,900.
Traders can consider buying Nifty December futures around 26,150 or Nifty 26,300 CE of Dec 30 expiry around `130 for a potential upside in the near term. Upside targets to be watched for Nifty are around 26,350-26,400. Longs to be placed with stop loss of 25,900.
Despite bouts of intra-week volatility, Nifty managed to hold above its 5-WEMA, maintaining a weekly close above 26,000. The repeated formation of narrow-bodied candles with long wicks on the weekly chart signals compression—typically a precursor to a sharp directional move.
A sustained move above 26,050 remains the key trigger for a bullish thrust. Once crossed, the index is well-positioned to head toward the 26,330–26,500 zone. Until this breakout is confirmed, an opposing move cannot be ruled out.
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