Nifty 50 Technical Analysis for Friday, 7th November 2025
A Practical Approach to Trade the Current Market Setup
The Nifty 50 index ended Thursday’s session at 25,509.70, down by nearly 88 points (–0.34%), continuing its short-term corrective tone. After showing strength for several weeks, the index is now witnessing some fatigue as global cues remain mixed and traders turn cautious near the higher range.
Let’s break down what the chart is really telling us — not just from a textbook perspective, but from a trader’s viewpoint who needs real entry, exit, and stop-loss levels.
Chart Overview and Market Mood
The current Nifty daily chart shows price action hovering between the 20-day EMA (around 25,599) and 50-day EMA (around 25,321) — a critical short-term zone that often decides the next directional move.
This phase is typical when markets pause after a sharp rally — traders book partial profits, fresh buyers wait for confirmation, and volatility slightly dips before the next leg begins.
Despite the recent softness, the long-term trend remains upward, as the price continues to stay above the 100-day and 200-day EMAs. Hence, this decline looks more like a technical pullback than a trend reversal.
However, it’s essential for bulls to protect 25,300 — a breakdown below this level could shift short-term momentum into the hands of bears.
Indicators’ Interpretation and Trading Psychology
- The RSI (14) has cooled to around 49, which means the market has moved out of the overbought zone and is now neutral. This is a crucial zone where the next move often starts. A bounce in RSI from these levels typically indicates renewed buying interest.
- The volume analysis shows that selling pressure isn’t panic-driven — it’s mostly profit-booking. Hence, traders should avoid overreacting to every down day and instead observe whether the index forms a base around 25,400–25,300.
From a psychological perspective, many traders tend to chase momentum, but real professionals use such pullbacks to enter quality positions with better risk-reward ratios. This is one of those phases where patience can reward more than aggression.
Trading Strategy for Friday (07.11.2025)
🟢 Scenario 1: Buying the Dip (Preferred for Swing Traders)
If Nifty opens flat or slightly negative and holds above 25,400, traders can look for a buy-on-dip opportunity.
- Buy Zone: 25,400 – 25,450
- Target 1: 25,650
- Target 2: 25,720
- Stop Loss: 25,300 (strict closing basis)
Practical Approach:
Watch the first 30 minutes of trade. If Nifty manages to hold the 25,400 zone and forms a higher low on the 15-minute chart, it signals strength. Add partial long positions and trail your stop-loss once the price crosses 25,600.
Learning Point:
This setup helps you participate in a pullback rally while limiting downside risk. It’s a classic “support bounce” strategy used by positional traders.
🔴 Scenario 2: Shorting the Breakdown (For Active Traders)
If Nifty fails to hold 25,300 and breaks down decisively with volume, a short trade can be initiated.
- Sell Below: 25,300
- Target 1: 25,050
- Target 2: 24,850
- Stop Loss: 25,450
Practical Approach:
Wait for a strong candle closing below 25,300 on the hourly chart before shorting. Avoid impulsive entries on a gap-down open — let the index confirm weakness through sustained selling.
Learning Point:
Breakdown trades require conviction and quick decision-making. Always manage position size, as false breakouts are common in such zones.
Broader Market View and Positional Outlook
Despite the near-term volatility, the Nifty continues to respect its 200-day EMA at 24,640, indicating that the long-term bull trend remains intact. The current correction is likely part of a healthy consolidation before the next leg up.
Investors and swing traders should focus on sectors showing relative strength — Banking, Auto, and Select IT stocks are holding firm, while Pharma and Metals are under mild pressure.
Hence, this is not the time to panic. Instead, it’s a time to observe structure, plan entries around key supports, and let price action confirm direction.
Conclusion
For Friday, Nifty 50’s short-term outlook remains cautious but not bearish. A bounce from 25,400–25,450 could trigger a recovery toward 25,700, while a breakdown below 25,300 could lead to a deeper test of 25,050.
The key to trading this phase lies in discipline — trade light, respect stop-losses, and avoid emotional trades. Remember, professional traders make money by trading the plan, not predicting the market.
Final Takeaway:
👉 “Market corrections are not enemies of traders; they are opportunities disguised as fear.”
Use this phase to refine your setups, stay alert near key levels, and trade with a plan — not with hope.
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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