Buy or Sell Strategy, Key Levels, and Trading Plan
The NIFTY 50 index is currently hovering near the 26,000 mark, a level that carries both psychological and technical importance for traders. After a strong rally in recent weeks, the market is now showing signs of healthy consolidation rather than weakness. For active traders and short-term investors, this phase provides excellent opportunities—provided trades are planned with discipline and clarity.
In this blog, we break down the daily technical outlook for NIFTY 50 on Tuesday, 16 December 2025, with a practical buy/sell strategy, stop-loss levels, and risk management guidance.
Current Market Overview
At present, NIFTY is trading around 26,027, slightly below its recent highs. The minor pullback seen in the last few sessions should not be mistaken for trend reversal. Instead, the index appears to be digesting gains after a sustained uptrend.
Key observations:
- The broader market structure remains bullish
- Selling pressure is limited and controlled
- Buyers are active on intraday declines
This behavior typically indicates time-wise correction, where price moves sideways while momentum indicators cool off.
NIFTY 50 Technical Analysis (Daily Chart)
Moving Average Analysis
Moving averages continue to provide strong technical support to the index:
- 20 EMA (~25,960): Short-term support and swing traders’ reference
- 50 EMA (~25,750): Positional trend support
- 100 EMA (~25,430): Medium-term structure support
- 200 EMA (~24,950): Long-term bullish base
📌 SEO Insight:
As long as NIFTY remains above the 50-day EMA, the bullish trend remains intact.
RSI Momentum Indicator
The Relative Strength Index (RSI 14) is currently positioned around 53–55:
- Indicates neutral to positive momentum
- No overbought conditions
- No oversold panic
This RSI behavior supports range-bound trading with a bullish bias.
Key Support and Resistance Levels for NIFTY
Resistance Levels
- 26,150 – 26,250: Immediate selling zone
- 26,400: Breakout level for fresh upside momentum
Support Levels
- 25,950 – 25,900: Immediate buying support
- 25,750: Major trend support for positional traders
NIFTY 50 Buy or Sell Strategy for 16 December 2025
✅ Buy Strategy: Trade with the Trend
When to Buy NIFTY:
If the index sustains above 26,080, it indicates buyer confidence near support.
- Buy Zone: 26,080 – 26,120
- Target 1: 26,200
- Target 2: 26,350
- Stop Loss: 25,950
🧠 Trading Logic:
This setup aligns with the broader uptrend and uses nearby support for risk control.
❌ Sell Strategy: Only on Breakdown
Short trades should be taken only if support fails.
- Sell Below: 25,900
- Target 1: 25,780
- Target 2: 25,650
- Stop Loss: 26,050
🧠 Trading Logic:
This is a counter-trend trade, suitable only for short-term traders with strict stop losses.
Risk Management Tips for Traders
Successful trading is more about capital preservation than frequent trading.
✔ Always trade with a predefined stop loss
✔ Avoid overtrading near round-number levels like 26,000
✔ Reduce position size during consolidation
✔ Trail stop losses when price moves favorably
Discipline is the only indicator that never fails.
NIFTY 50 Outlook for the Coming Sessions
- Trend: Bullish with sideways consolidation
- Trading Bias: Buy on dips
- Downside Risk: Limited above 25,750
- Volatility: Expected near resistance levels
The market is not showing signs of exhaustion. Instead, it is building strength quietly, which often precedes another directional move.
Final Verdict: Should You Buy or Sell NIFTY?
For Tuesday, 16 December 2025, the preferred strategy remains:
- Buy on dips near support
- Sell only if key levels break
- Trade with logic, not emotions
📌 Markets reward patience and punish prediction.
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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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