Nifty50 Weekly Technical Outlook (for Tuesday, 04 November 2025): Can Bulls Hold the Fort Above 25,700?
The Indian equity market seems to be standing at a decisive point — one where patience, discipline, and level-based trading will decide success. The Nifty50 index, after a decent recovery from its September lows, has managed to maintain a steady uptrend and closed the week at 25,763.35, adding a modest 0.16%. While the broader structure continues to favor the bulls, the chart now reflects a classic “pause before the move” setup — something that experienced traders watch closely.
Market Structure: Where We Stand Now
Looking at the weekly chart, Nifty50 has been trading above all its major exponential moving averages (20, 50, 100, and 200 EMA). The 20-week EMA near 25,090 is providing strong underlying support, while the price has been consolidating just below the key psychological mark of 26,000–26,250, which has acted as a stiff resistance in the past.
This consolidation phase indicates that the index is gathering strength before attempting the next breakout. If the index manages to decisively close above 26,250, we may witness a fresh rally towards 26,500–26,700 levels in the coming sessions.
However, the market also has a tendency to trap overconfident buyers near resistance zones. Hence, a practical trader’s approach would be to buy on dips rather than chasing momentum near resistance levels.
Technical Indicators at a Glance
- RSI (14): The Relative Strength Index stands around 61, comfortably placed in the bullish territory but not overbought yet. This indicates steady momentum with scope for further upside.
- Volume: The recent candles have shown balanced participation, with moderate buying interest. The lack of sharp spikes in volume suggests that traders are still cautious and waiting for confirmation before going aggressive.
- Price Action: Small-bodied candles with upper wicks near 26,200 suggest mild profit booking, but no major selling pressure — a healthy sign for continuation.
Practical Trading Strategy for 04 November 2025
🟢 For Swing and Positional Traders (Bullish Setup)
The overall market sentiment remains constructive. Traders should consider accumulating positions on dips rather than entering at highs.
- Buy Zone: Between 25,600 – 25,700 levels.
- Stop Loss: 25,400 on a closing basis (just below 20-EMA).
- Targets:
- Target 1: 26,150
- Target 2: 26,400 (if momentum sustains)
Once Nifty sustains above 26,250 for a full session with volume confirmation, traders can consider adding to their long positions, as that would signal a breakout continuation.
🔴 For Short-Term Traders (Cautious / Reversal Setup)
If Nifty fails to break above 26,250 and shows price rejection or a bearish candle formation near resistance, a short trade can be initiated with a small risk setup.
- Sell Zone: Around 26,200 – 26,250
- Stop Loss: 26,350 (on a closing basis)
- Targets:
- Target 1: 25,650
- Target 2: 25,450
This trade is for short-term profit booking and should be closed near the mentioned targets as the broader trend still remains positive.
Learning Insight for Readers
From a trader’s perspective, the current Nifty structure is a good example of how a healthy consolidation near resistance should be interpreted. Instead of reacting to short-term moves, traders should focus on identifying key zones and market reactions around them.
- When prices hold above the 20 EMA and volumes remain steady, it indicates that institutional buyers are still active on dips.
- The RSI staying above 55 in a rising market is a strong sign that the trend remains intact.
- Real trading success lies in buying fear and selling greed — meaning, accumulate when others hesitate and book profits when the crowd turns euphoric.
Hence, discipline, patience, and clear level-based strategies are far more effective than chasing fast-moving rallies.
Conclusion: Stay Bullish, But Be Tactical
To sum up, Nifty50 remains in a bullish to cautiously optimistic zone, as long as it trades above 25,400. The index is preparing for its next directional move, and a decisive breakout above 26,250 could open doors to new all-time highs. However, until that happens, the ideal approach is to trade within the defined range, respect stop-loss levels, and let the market show its hand before taking aggressive positions.
In short:
“The market is rewarding those who wait for the right setup. 25,400 is your line of defense; 26,250 is your gateway to the next bull leg.”
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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