Nifty50 Daily Technical Outlook for Friday, 31st October 2025: Bulls on Pause or a Dip Before the Next Run?
The Nifty50 index ended Thursday’s session at 25,877.85, slipping by 0.68%, as traders preferred to book profits after a sustained rally over the past few weeks. On the surface, this may look like just another red day, but a closer look at the technical chart reveals an interesting setup that could define the tone for the upcoming sessions.
Technical Structure and Chart Reading
The index continues to stay above its key moving averages — the 20-day EMA (25,580), 50-day EMA (25,265), and 100-day EMA (25,005). This alignment clearly indicates that the primary trend remains bullish. However, the formation of a small bearish candle near the upper resistance zone around 26,000–26,050 suggests that the index might be entering a short-term consolidation phase.
In simple terms, bulls are taking a breather. Every time Nifty approaches 26,000, sellers emerge — likely due to profit booking by institutional players or cautious traders who prefer not to carry heavy long positions near psychological resistance levels.
The RSI (14) is currently hovering around 64, cooling off from the earlier overbought territory. This is not a sign of weakness yet — rather, it’s a signal that momentum is stabilizing before the next potential swing. Volume analysis also supports this view: participation has slightly reduced compared to the previous bullish sessions, showing that the market is in a “pause mode” rather than a reversal.
Key Levels to Watch
- Immediate Resistance: 26,000–26,050
- Next Resistance: 26,300
- Immediate Support: 25,700
- Major Support: 25,440 (aligned with the 50-day EMA)
Practical Trading Approach for Friday, 31.10.2025
Let’s break this down into actionable strategies that traders can apply in real market conditions.
🔹 Scenario 1: Intraday Bearish Trade (If 25,900 fails to hold)
If the Nifty opens flat or slightly negative and sustains below 25,900, it could trigger a mild correction. Traders can consider initiating short positions with the following plan:
- Sell Below: 25,900
- Target 1: 25,720
- Target 2: 25,600
- Stop Loss: 26,050
This setup offers a risk-reward ratio close to 1:2 — a good trade if the market shows follow-through selling pressure. However, traders should book partial profits near 25,720 and trail their stop loss to cost for safety.
🔹 Scenario 2: Buy on Dips (If Nifty stabilizes near 25,700)
If Nifty corrects to the support zone of 25,700–25,600 and starts showing reversal signs (such as bullish candles, higher lows, or strong volume recovery), it could present a solid buy-on-dips opportunity for both intraday and swing traders.
- Buy Zone: 25,700–25,600
- Target 1: 25,950
- Target 2: 26,150
- Stop Loss: 25,500
This setup aligns with the broader uptrend and capitalizes on dip-buying — a favored strategy in bullish markets.
🔹 Scenario 3: Positional View (For medium-term investors)
As long as Nifty holds above 25,440, the broader structure remains positive. Any fall near this level should be seen as a reaccumulation phase rather than a trend reversal. Investors holding index-based ETFs or large-cap stocks can maintain a bullish stance with a stop loss at 25,400 on a closing basis. The potential upside remains open towards 26,200–26,300 in the coming sessions.
Market Psychology and Learning Angle
From a learning perspective, this phase is an excellent case study on how markets behave after strong rallies. When indices reach psychological round levels (like 26,000), traders often expect a breakout — but the market prefers consolidation. This “time correction” helps absorb the earlier overbought conditions and prepares the index for the next leg up.
For beginners, this is a reminder that every breakout is not meant to be chased; patience often rewards those who wait for healthy pullbacks. For experienced traders, the current setup is ideal for range trading with defined stop losses on both sides.
Conclusion
For Friday’s trading session, Nifty50 is expected to remain range-bound with a mildly bearish bias in the morning, followed by possible recovery attempts if global cues remain supportive.
The short-term sentiment is neutral-to-positive, while the medium-term trend continues to favor the bulls. Traders should remain disciplined, stick to their stop losses, and avoid emotional trades around the 26,000 mark.
Summary Table:
| View | Bias | Key Levels | Action |
| Intraday | Mildly Bearish below 25,900 | 25,700 / 26,050 | Sell below 25,900 with SL 26,050 |
| Swing | Buy on dips | 25,700–25,600 | Buy with SL 25,500 for targets 26,000+ |
| Positional | Bullish | Above 25,440 | Hold longs or accumulate on dips |
Final Takeaway
The market is taking a breather, not reversing. Stay alert for opportunities near support zones rather than chasing highs. Smart traders make more money buying fear than buying excitement.
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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