Nifty50 Daily Technical Analysis for Friday, 21 November 2025
A Practical, Level-Based Strategy for Real Traders — Not Just Theory
The Nifty50 closed at 26,192 after gaining momentum throughout the week, respecting its short-term supports and inching closer to a decisive breakout. The index has spent the last few sessions consolidating just below its major resistance band of 26,200–26,250, and Thursday’s price action clearly reflects buyers’ confidence. What is different this time?
Unlike the previous attempts where Nifty touched the resistance and pulled back immediately, this current structure shows tight consolidation, higher lows, and stronger close-to-close gains, which usually hints that institutions are positioning themselves for a possible breakout.
1. Understanding the Current Market Structure
(A) Higher Lows & Well-Aligned Moving Averages
The 20, 50, 100, and 200 EMAs are not only trending upward but also maintaining clear spacing between them. This spacing often acts like layers of insurance for bulls, meaning:
- Short-term buyers support the price at the 20 EMA (~25,800–25,850).
- Swing traders defend the 50 EMA (~25,500–25,550).
- Long-term investors maintain confidence as long as Nifty is above the 100 & 200 EMAs.
This alignment is typically seen only in strong bull phases and rarely breaks without a meaningful consolidation period.
(B) The “Pressure Cooker” Setup Near Resistance
Nifty is hovering around the same resistance zone for multiple days. These kinds of tight ranges near resistance levels often behave like a pressure cooker — when the lid opens, the move is sharp and directional.
If price sustains above 26,250, shorts will be forced to cover, and fresh long positions can flood the market.
2. Practical Trading Approach for Friday
Let’s move beyond textbook recommendations and focus on how real traders should approach this market, using proper entries, exits, risk management, and psychology.
✅ Bullish Strategy (Higher Probability Trade)
This is the primary bias for Friday.
When to Buy?
Don’t buy the moment the market opens. Professional traders wait for confirmation.
A breakout only becomes reliable when Nifty sustains above 26,200–26,250 for at least 15–30 minutes with stable candles (not spikes).
📌 Buy Zone:
26,230 – 26,260
🎯 Targets:
- 26,350 – quick intraday booking
- 26,420 – strong upside once breakout strengthens
- 26,500 – positional traders may hold
🛡 Stop Loss (SL):
25,980
Placed below Thursday’s support and a psychological round number. A dip below this zone shows momentum weakening temporarily.
🧠 Trader’s Practical Note:
A breakout trade should never be entered in excitement.
If Nifty jumps straight to 26,260 at the open, avoid chasing.
Wait for retracements; wait for stability.
Breakouts are successful only when accompanied by sustained price action, not emotional entries.
❌ Bearish / Pullback Strategy (Low Probability but Useful)
This is not a trend reversal call — it is a controlled pullback trade that only active intraday traders should consider.
When to Sell?
If Nifty breaks below 26,060 and shows back-to-back red candles, it indicates short-term profit booking.
📌 Sell Zone:
26,030 – 26,050
🎯 Targets:
- 25,920 – first profit zone
- 25,850 – 20 EMA support; expect strong buying here
🛡 Stop Loss (SL):
26,180
🧠 Trader’s Practical Note:
Shorting in a strong uptrend is like swimming against the tide.
Only those with quick execution and strict discipline should attempt it.
Do not hold shorts once Nifty touches the 20 EMA — this is where buyers typically return.
3. What Should Traders Expect on Friday?
Scenario A: Breakout Day (High Probability)
- Sustained trading above 26,250
- Strong buying from institutions
- Shorts getting trapped
- Possibility of a fresh all-time-high rally
This is the ideal environment for long trades.
Scenario B: Sideways to Mild Pullback (Medium Probability)
- Nifty oscillates between 26,100–26,230
- Buying emerges near every dip
- Breakout may happen later in the day or next week
This favors positional traders adding on dips.
Scenario C: Sharp Pullback (Low Probability)
- Only if global cues turn negative
- Support levels: 25,920 → 25,850 → 25,780
- Trend remains intact unless 25,500 breaks
4. Conclusion: What Real Traders Should Do
- The market trend is strongly bullish.
- Dips are opportunities, not threats.
- Breakout above 26,250 could unlock a new leg of rally.
- Risk management must not be compromised — high volatility often follows all-time-high zones.
Overall Bias for Friday:
Bullish as long as Nifty holds above 25,900.
Click Here to join our partner Equity / Other Capital Market Investing Platform and unlock MarketShala’s expert-backed investing guidance. For personal assistance, email us at somnath@markshala.com or WhatsApp at +91-8209177236.
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.
***********