Nifty 50 Outlook for Thursday: Buy or Sell?

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📌 Market Structure Overview

  • Nifty has bounced strongly from the recent swing low and is now trading above the 20, 50 and 100 EMA, showing short-term strength.
  • Price is approaching a resistance zone near 25,400 – 25,500, where it previously faced rejection.
  • The 200 EMA is far below, confirming that the primary trend remains bullish.
  • RSI near 60 → positive momentum, but still not overbought.

This is a “trend-up but near resistance” setup.


✅ BUY Trade Setup (Preferred if breakout happens)

Entry Trigger:
👉 Go long only if price sustains above 25,400 with strength and volume.

Stop-Loss Options:

  • Conservative: Below 25,200 (recent support / 20EMA zone)
  • Aggressive: Below 25,250 (last candle low/intraday reference)

Targets:

  • T1: 25,550
  • T2: 25,700
  • If momentum is strong, trail stop using 20 EMA and ride the trend.

Reason to Buy:
✔ Price above EMAs
✔ Higher lows forming
✔ RSI rising
✔ Breakout zone approaching


❌ SELL Trade Setup (Only if rejection appears)

Entry Trigger:
👉 Go short only if price fails near 25,400–25,500 and forms a bearish reversal candle.

Stop-Loss:

  • Above 25,550 (resistance break invalidates trade)

Targets:

  • T1: 25,200 (20 EMA)
  • T2: 25,000 (50 EMA)
  • T3: 24,850 (major support)

Reason to Sell:
⚠ Only if breakout fails and sellers show strong candles + volume.


🎯 EXPERT VIEW – What should a trader do?

Primary Bias: Bullish
Nifty is showing strength, respecting moving averages, and RSI supports upside momentum.
However, resistance is close — so wait for a confirmed breakout before aggressive buying.

👉 Best Plan:
Buy on breakout above 25,400 with stop-loss discipline.

👉 Alternative Plan:
Sell only if a clear rejection or bearish candle forms at resistance.

⚠ Avoid guessing. Let price confirm direction.


📌 Pro Tips for Tomorrow

✔ Watch first 30–60 min price action
✔ Volume confirmation is crucial for breakout
✔ Use trailing stop once trade moves in your favor
✔ Avoid overtrading inside narrow range


✅ Conclusion

Breakout = BUY and ride the trend
Rejection = SELL and play the pullback
No clear move = Wait and protect capital


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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