Short term - Technical Outlook
Nifty ended lower on Thursday, breaking out of its recent consolidation band and forming a short-term lower high-lower low sequence. The 26,000 zone remains a strong overhead supply area, reinforced by heavy call writing and repeated rejection. Immediate support has shifted to 25,700. Below this, the 25,650–25,550 zone becomes critical as it aligns with the 20-day and 100-day EMAs, making it an important structural cushion. As long as this broader support band holds, the overall trend remains mildly constructive despite short-term weakness. Momentum indicators are signalling caution. RSI has cooled, and upside strength is fading. A decisive breakdown below 25,700 may extend the decline towards 25,600 or lower levels. On the upside, only a sustained move above 25,900–26,000 can revive bullish momentum, potentially pushing the index towards 26,100–26,300.

Short term Research Report Call
Buy Above: 26900 | Targets: 26960, 26000, 26700 | Stop-loss: 25850
Sell Below: 25700 | Targets: 25620, 25550, 25490 | Stop-loss: 25750

Short term Chart

Long term - Technical Outlook

Nifty is trading in a range-bound to consolidation zone. On the higher side, 26,300-26,400 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 25,500–25,600 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 25,000 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: 26000 | Targets: 26050, 26120, 26200 | Stop-loss: 25900
Sell Below: 25800 | Targets: 25750, 25670, 25600 | Stop-loss: 25900
 

Long term Chart
 

Indian markets opened sharply lower, extending the previous session’s correction as broad-based selling pressure gripped the Street. The sharp decline in the IT pack remains the primary drag, with the Nifty IT index tumbling nearly 5% in early trade amid rising concerns over AI-led disruption to India’s labour-intensive services model. Rapid global adoption of AI has reignited fears of potential pressure on outsourcing demand, triggering aggressive profit booking in frontline IT names. Sentiment has also been weighed down by fading expectations of near-term U.S. rate cuts following strong U.S. jobs data, which intensified the overnight selloff in U.S. technology stocks. Mixed Asian cues, with key markets such as Japan and Australia trading lower, have further dampened risk appetite. Early trade is likely to remain volatile with a bearish bias and range-bound tendencies, with further consolidation or selling pressure possible unless global cues turn supportive. Overall, the near-term market bias remains cautious to bearish, with consolidation and profit booking dominating sentiment.
 

Nifty 50

Nifty 50 opened with a gap-down near 25,580, slipping below its 20- and 50-day EMAs and breaking beneath the recent consolidation support around 25,750–25,800, which signals near-term weakness. Immediate support is placed in the 25,500–25,450 zone. Momentum indicators reflect caution with a mild sell bias as strength continues to fade, while RSI around 48 has turned downward. A decisive break below 25,500 could accelerate the decline towards 25,400 or lower levels. On the upside, reclaiming and sustaining above 25,800–25,900 is essential to stabilise price action and revive any bullish momentum towards the 26,000 resistance zone, which remains a heavy overhead supply area. Early trade is likely to remain volatile with a bearish tilt and range-bound tendencies, with further consolidation or selling pressure possible unless global cues turn supportive.
 

Bank Nifty

Bank Nifty opened on a mildly lower note but continues to show relative resilience versus the broader market weakness, holding near the 60,500–60,450 support base and maintaining a positive short-term structure with higher lows still intact. A strong breakout and close above 60,900 would signal bullish continuation and could open the upside towards 61,500 on a pickup in momentum. On the downside, a slip below 60,400 may trigger consolidation or distribution pressure towards the 60,000 zone. Momentum indicators suggest strength is gradually easing but remains supportive for now. Overall, Bank Nifty retains a range-bound setup with relative strength, and early trade is likely to see consolidation with selective buying emerging on dips.