Nifty50 Futures is currently standing at a point where the market is neither clearly bullish nor decisively bearish. After giving up its recent gains, price action has slowed down instead of accelerating lower, suggesting that traders are reassessing direction rather than reacting emotionally. Such phases often become decisive, making the upcoming session important for both intraday and positional traders.
On the higher timeframe, the weekly chart has printed a doji candle, a classic sign of indecision. This formation reflects a balance between buyers and sellers and often appears when the market is preparing for its next meaningful move. When a weekly doji forms near key levels, it signals that the market is waiting for confirmation rather than committing aggressively.
Interestingly, the daily chart tells a slightly different story. Despite losing all recent gains, Nifty50 Futures has managed to form a higher high and a higher low in the latest session. Even more encouraging is the fact that the index has now formed a higher low for the third trading day in a row. This repeated defence of higher lows indicates quiet accumulation and suggests that buyers are still active beneath the surface.
Intraday Trading Strategy for Nifty50 Futures
For intraday traders, this is not a market to chase moves. Trades should be taken only after price confirms direction near important levels.
Buying can be considered if Nifty50 Futures shows stability in the 25,900 to 25,950 zone. Stability here means sustained trading above this range, not a brief spike caused by volatility. Acceptance in this area would suggest that selling pressure is getting absorbed and that buyers are attempting to regain short-term control.
Intraday long positions should be managed with a strict stop loss of 50 points below the buying price, while the minimum upside expectation should be around 100 points. This setup relies on the idea that once the market accepts above this zone, short covering and momentum buying can push prices higher during the session.
On the downside, intraday selling becomes relevant only if the index breaks and sustains below the 25,720 level. A move below this support would signal weakness in the short-term structure. Short trades below this level should carry a stop loss 50 points above the selling price, with a downside target of at least 100 points. This approach keeps risk defined while allowing room for a directional intraday move.
Positional Trading Outlook: Two Clear Scenarios
From a positional perspective, the chart presents two well-defined possibilities, and traders should be prepared for both without bias.
A positional sell setup becomes valid if Nifty50 Futures breaks below 25,600 on a sustained basis. Such a move would indicate that the recent higher-low structure has failed and that sellers are gaining control. In this scenario, positional short positions can be initiated with a stop loss above 25,960. If weakness continues, the index may gradually drift towards 25,400 and eventually test the 24,800 zone, where stronger demand is visible on the daily chart.
On the other hand, positional buying opportunities emerge if the market moves into the 25,975 to 26,000 zone and shows acceptance above it. This area acts as a critical trigger point. A sustained move above this range would suggest renewed strength and a potential continuation of the broader trend. Positional long trades initiated here should be protected with a stop loss below 25,550 on a daily closing basis. If the structure holds, the upside potential extends towards 26,400 and higher.
Why This Phase Matters for Traders
Markets often reward patience during periods of indecision. The weekly doji reflects uncertainty, but the daily chart’s consistent formation of higher lows points towards underlying strength. This divergence between timeframes is what makes the current setup important. Direction will be decided not by prediction, but by how price behaves around clearly defined levels.
For Monday, the focus should remain on confirmation, disciplined execution, and strict risk management. When markets reach such inflection points, levels matter more than opinions.
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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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