Nifty50 Technical Analysis for 08 December 2025: Buy or Sell Strategy with Key Levels, Targets & Stop Loss

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Nifty50 Technical Analysis for Monday, 08 December 2025

Actionable Trading Strategy with Key Levels, Targets, SL & Real-World Insights

The Nifty50 index continues to display a strong upward structure on the daily chart, supported by rising moving averages and stable buying pressure across dips. With the index hovering near a crucial resistance band, traders should prepare for a session driven more by price confirmation than predictions.

This detailed analysis not only provides buy/sell levels but also teaches readers how to interpret market structure, apply real-time risk management, and frame trades like seasoned professionals.


🔍 Market Outlook Based on Daily Chart

1 Nifty Above All Key EMAs – The Trend Is Intact

Price is trading comfortably above the 20, 50, 100, and 200 EMA, which signals that the market is firmly in the hands of buyers. Such alignment is usually seen in trending markets where corrections are short-lived.

The 20-EMA slope continues to rise, indicating that short-term momentum remains bullish.


2️⃣ Sideways Consolidation Near Highs = Strength, Not Weakness

Nifty is moving sideways just below the 26,230–26,290 resistance zone. This is a bullish sign because:

  • There is no aggressive selling
  • Big players often accumulate in such zones
  • Breakouts are usually smooth after consolidation

This behavior shows readiness for a potential continuation move.


3️⃣ RSI Around 60 – Enough Strength for a Breakout

The RSI hovering near the 60–62 zone indicates positive momentum. It is not overbought, suggesting the market still has space to rise if buyers push above resistance.


4️⃣ Volume Remains Steady

Volumes do not show signs of panic selling or distribution. This balanced activity often precedes a breakout or directional move.


🎯 Key Levels for Monday (08 December 2025)

Major Support Zone: 26,050 – 26,100

A crucial area defended multiple times. As long as this holds, the market remains bullish.

Major Resistance Zone: 26,230 – 26,290

A breakout zone that can trigger fresh momentum.


📈 Practical Trade Setups for the Day

Below are two realistic, disciplined, and rule-based trade strategies ideal for intraday and short-term traders.


1. Bullish Trade Setup (Preferred Setup)

Go Long Only If Nifty Sustains Above 26,200

Avoid early entries or emotional trades. Let the market prove that buyers have control.

Buy Above: 26,200

Target Levels:

  • T1: 26,270
  • T2: 26,320
  • T3: 26,380 (Extended momentum target)

Stop Loss: 26,120

Why This Trade Works:

A sustained move above 26,200 confirms that supply is absorbed and a breakout is underway. When EMAs, RSI, and trend structure align, continuation moves often play out smoothly.


2. Bearish Trade Setup (Only Below Support)

Short Only If Nifty Breaks Below 26,050

Since the broader trend is bullish, sell trades should be taken only after clear breakdown confirmation.

Sell Below: 26,050

Target Levels:

  • T1: 25,980
  • T2: 25,915
  • T3: 25,850 (Near 50-EMA)

Stop Loss: 26,140

Why This Trade Works:

A breakdown below support indicates loss of momentum, forcing traders to book profits. Short-term weakness can pull the index toward deeper EMAs where buyers may re-enter.


🧠 Practical Trading Tips to Master Such Market Conditions

1 Avoid the first 10–15 minutes — let levels confirm

The opening volatility often traps impulsive traders.

2 Do not pre-empt breakouts

Breakout trades work best when confirmation candles are visible.

3 Stick to strict stop-loss and position sizing

Control risk, not predictions.

4 Book partial profits at T1

This locks in gains and reduces emotional pressure.

5 If momentum looks weak after breakout, exit early

Protect capital over ego.


📌 Final Outlook

Nifty50 remains in a strong structural uptrend. The index is approaching a resistance zone that, if crossed, could trigger the next leg of the rally. The key to trading Monday’s session lies in watching the levels:

  • Bullish above 26,200
  • Cautious below 26,050

This analysis is structured to help both beginners and experienced traders understand not only what to trade but also why these levels matter. It’s designed to teach real-world trading psychology, risk management, and setup selection — making the blog highly educational and genuinely useful.


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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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