📈 Nifty50 Daily Technical Analysis
Trading Strategy for Tuesday, 28 October 2025
The Nifty50 ended the previous session near 25,966, extending its upward journey and staying comfortably above all major moving averages including the 20 EMA, 50 EMA, 100 EMA, and 200 EMA. This structure clearly signals that the broader market trend is bullish and buyers are maintaining control.
But — momentum indicators like RSI near 71 are hinting that the market has entered overbought territory, where profit-booking can emerge anytime. In such a scenario, a trader must act smartly:
Ride the trend, but respect the risk.
🔎 What the Chart Is Telling Us
Here’s a simplified breakdown for readers to understand market psychology:
✅ Strong uptrend — Higher highs & higher lows visible
✅ Price holding above 20 EMA — Fresh buying by institutions
✅ Volume stable — Trend continuation with discipline
⚠️ Overbought RSI — Bulls may temporarily take a pause
These signals combined tell us:
The bulls are not tired yet, but they may inhale before the next sprint.
🔥 Practical Trade Levels for Tuesday
Instead of guessing market direction, we will react to price action using levels that institutions are watching.
✅ Strategy 1: Long / Buy Only Above 26,050
A breakout above 26,050 will mean that buyers are ready to push Nifty into a fresh all-time high territory.
📌 Buy Entry: Above 26,060
🎯 Targets:
• First Target: 26,200
• Second Target: 26,300
🛡 Stop Loss: 25,880 (Below 20 EMA & recent support)
Trade Psychology:
- If price sustains above 26,050 with good volume → confidence booster for bulls
- Don’t chase a big gap-up opening. Wait for a retracement to your entry level
Trail your stop loss as the price moves up — protect profits like a professional
✅ Strategy 2: Short / Sell Only Below 25,880
If bears manage to drag prices below 25,880, it signals a short-term reversal from overbought conditions.
📌 Sell Entry: Below 25,870
🎯 Targets:
• First Target: 25,750
• Second Target: 25,600
🛡 Stop Loss: 26,040
Trade Psychology:
- Short only when price shows weakness — don’t pre-estimate a fall
- Breakdown + volume = stronger downside move
- Quick targets → don’t overstay in a correction
🧠 A Trader’s Smart Playbook for This Market
| Situation on Tuesday | Best Action |
| Flat to mild positive open | Look for a breakout above 26,050 |
| Gap-up opening above resistance | Avoid fresh buys; wait for pullback |
| Negative open near 25,900 | Watch if 25,880 breaks or buyers defend |
| Sideways consolidation | Avoid overtrading — wait for trigger |
“Markets reward patience. The smartest trade is often the one you don’t take.”
📌 Core Learning for Beginner Traders
⭐ Follow levels, not emotions
⭐ Always set a stop loss before entering a trade
⭐ A trending market gives profits only to trend followers, not prediction-makers
⭐ If you’re already in profits, trailing SL is your best friend
🎯 Final Verdict
✅ Primary Trend: Bullish
⚠️ Zone: Overbought — but still strong
The market continues to offer opportunities, but one must trade with discipline. Let the levels decide your action — not fear or excitement. The goal is not to catch every move, but to catch the right move, with the right risk control.
Disclaimer
The views and analysis provided above are for educational and informational purposes only and should not be considered as financial or investment advice. Trading and investing in the stock market involve risk, and past performance does not guarantee future results.
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|| ॐ नमः शिवाय ||