Short term - Technical Outlook

Nifty has slipped into a short-term bearish bias after decisively breaking below the critical 25,600 support zone. The index remains trapped in a broader consolidation-cum-corrective phase within the 25,500–26,000 band and continues to trade below the 20-, 50- and 100-day EMAs, reflecting muted momentum. Immediate support l at 25,500. Below this, the next key demand zones are seen at 25,400 (previous swing high now acting as support) and 25,125 (the August 21, 2025 swing high area). A pickup in expiry-related selling or fresh FII pressure could expose these lower levels.

On the upside, 25,600–25,700 now acts as immediate resistance. Reclaiming this former support zone is essential to restore a neutral stance. RSI has slipped below the 40 band, signalling weak momentum and a bearish tilt, though it is approaching but not yet confirming  oversold reversal conditions. 

For expiry, the bias remains neutral to mildly bearish. Put-writing at lower strikes indicates some downside cushioning and potential pinning near the 25,500–25,600 zone. Bulls need a strong close above 25,700 to stabilise sentiment; failure to do so keeps the door open for tests toward 25,400–25,300 on expiry unwinding or FII-driven pressure.
 

Short term Research Report Call

Buy Above: 25700 | Targets: 25770, 25820, 25870 | Stop-loss: 25620
Sell Below: 25550 | Targets: 25500, 25450, 25400 | Stop-loss: 25700

Short term Chart

Long term - Technical Outlook

Nifty continues to trade in a structural uptrend, supported by its position above major moving averages. On the higher side, 26,300-26,350 is emerging as a crucial resistance zone; a decisive breakout above this level could trigger further upside, opening the path toward 26,500 and potentially new lifetime highs. On the downside, strong support is identified in the 26,600–25,500 band, which is likely to act as a demand zone on pullbacks. However, a sustained breach of this support region may invite profit-booking and corrective pressure, dragging the index lower toward the 25,300 mark or even below. Overall, the technical setup favors the bulls as long as Nifty maintains strength above its support levels, with every dip presenting a buying opportunity until proven otherwise.

Long term Research Report Call
Buy Above: 25950 | Targets: 26000, 26050, 26100 | Stop-loss: 26850
Sell Below: 25850 | Targets: 25800, 25750, 25700 | Stop-loss: 26000
 

Long term Chart

Indian equity markets opened on a flat to mildly negative note, reflecting consolidation after the late-2025 rally, cautious pre-Budget positioning and mixed global cues. While U.S. markets closed steady overnight, select Asian indices, including the Nikkei, traded weaker in early hours amid lingering concerns over U.S. tariff policies and heightened geopolitical tensions, keeping investor sentiment guarded.  
 

NIFTY 50

Nifty had been repeatedly testing the January 12 hammer candle low near 25,473 but was earlier finding buying support around that zone. However, the index has now slipped below this level in early trade, signalling a potential extension of near-term weakness. The next key demand zones are seen at 25,400, which was a previous swing high and is now expected to act as support, and at 25,125, corresponding to the August 21, 2025 swing high area. A pick-up in expiry-related selling or fresh FII pressure could expose these lower levels.

Nifty continues to trade below both the 20-day EMA (around 25,600) and the 50-day EMA, signalling muted short-term momentum. Immediate support is firmly placed at 25,500, with a stronger demand band at 25,400–25,300. A decisive break below 25,400 could invite deeper profit booking toward 25,100–25,000. On the upside, 25,600–25,750 acts as the first resistance zone, followed by heavier supply near 25,800–25,900. Until a sustained move above 25,650 emerges, the index is likely to remain range-bound with a mild bearish undertone.

BANK NIFTY

Bank Nifty opened near 59,850–59,900 but witnessed early selling that dragged it below the 59,800 mark. It is currently trading around the 59,700–59,720 zone, with declines remaining relatively shallow compared to the broader market. The index continues to display resilience, with the last two sessions forming an inside-harami structure. As long as this pattern holds, the broader structure remains intact; however, a decisive break below 59,500 would tilt the bias toward the negative. Bank Nifty is still holding above its rising channel support and the 20-day EMA near 59,000–59,200, preserving the underlying bullish structure. Immediate support lies at 59,700–59,600, followed by a stronger demand zone at 59,500–59,300. Resistance is placed at 59,900–60,000 on a psychological basis, with the next supply zone at 60,100–60,200.

Sentiment in the banking space remains more constructive than in the broader market, with steady dip-buying visible and potential for relative outperformance if headline indices stabilise.  The opening bias is neutral to mildly positive. A range-bound trade between 59,500–60,000 appears most likely today, with upside bias intact as long as the index sustains above the 59,500–59,700 support corridor.