Nifty 50 Daily Technical Analysis: Practical Trading Strategy for Monday, 22 December 2025
The Nifty 50 index is currently in a crucial consolidation phase after a strong upside rally. For traders, this phase is not boring—it is decisive. This is where markets either gather strength for the next leg up or start a meaningful correction.
In this blog, we focus on how a real trader should plan trades, not just on theoretical levels. The aim is to help you trade with clarity, discipline, and risk control.
Nifty 50 Current Market Overview
Nifty 50 closed near 25,966, holding firmly above key short-term moving averages. This suggests that buyers are still active, but momentum has slowed. Such behaviour is typical when markets pause before choosing the next direction.
This is not a market to chase trades. Instead, it is a market to wait, observe, and react.
Moving Averages Analysis: Trend Still on the Bullish Side
- 20-Day and 50-Day EMA: Acting as immediate support zones.
- 100-Day EMA (25,450–25,500): Strong positional support.
- 200-Day EMA: Well below current price, confirming a healthy medium-term uptrend.
Trading Insight
As long as Nifty remains above the 50-DMA, the broader bias remains positive. Any selling strategy should be strictly short-term and protected with tight stop losses.
RSI Indicator: Momentum Is Neutral, Not Weak
The RSI (14-period) is hovering around 52, which indicates:
- No overbought conditions
- No bearish divergence
- No panic selling
Trading Insight
This neutral RSI suggests that the market is consolidating, not reversing. Directional trades should be taken only after confirmation.
Nifty 50 Key Support and Resistance Levels
Important Resistance Zones
- 26,050 – 26,100: Immediate resistance
- 26,240 – 26,250: Strong supply zone
Important Support Zones
- 25,900 – 25,850: Immediate support
- 25,450 – 25,500: Major positional support
Understanding these zones is far more important than predicting market direction.
Nifty 50 Buy Strategy for Monday, 22 December 2025
✅ Bullish Trade Setup (Only on Breakout Confirmation)
- Buy Entry: 26,060 – 26,100
- Target 1: 26,200
- Target 2: 26,240 – 26,250
- Stop Loss: 25,900
Why This Buy Trade Makes Sense
A sustained move above 26,050 indicates strong buyer commitment. This breakout can attract momentum traders and short-covering, pushing the index towards recent highs.
📌 Practical Tip:
Once Target 1 is achieved, trail the stop loss to your entry price to protect capital.
Nifty 50 Sell Strategy for Monday
❌ Bearish Trade Setup (Only on Breakdown)
- Sell Entry: Below 25,840
- Target 1: 25,650
- Target 2: 25,500
- Stop Loss: 26,000
Why This Sell Trade Works
A breakdown below 25,850 indicates that short-term bulls are exiting. This can lead to a sharp move towards the 100-DMA, where buyers may re-enter.
📌 Practical Tip:
Avoid carrying short positions if Nifty reclaims 25,900.
Common Mistakes Traders Should Avoid
- Trading inside the 25,850–26,050 consolidation zone
- Over-leveraging in sideways markets
- Ignoring stop losses due to emotional bias
Sideways markets punish impatience and reward discipline.
Final Verdict: How Traders Should Approach Monday
- Market Bias: Sideways to mildly bullish
- Trend Status: Intact but resting
- Best Strategy: Breakout or breakdown trades only
Nifty is not weak—it is preparing. Traders who wait for confirmation will get cleaner setups and better risk-reward trades.
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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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