On 03 December 2025, Nifty50 is positioned below a strong resistance at 26,200–26,250, showing short-term exhaustion despite a bullish long-term trend. A buy trade is valid only above 26,260, while a sell trade becomes stronger below 25,900. Market structure suggests a possible dip before any fresh rally.
📝 Nifty50 Daily Technical Analysis for 03 December 2025: A Practical, Trader-Focused Guide
The Nifty50 entered December with an interesting mix of strength in the broader trend and hesitation at higher levels. Tuesday’s session ended at 26,032, forming a mildly bearish candle just below the heavy resistance zone. This structure reveals something important for traders: blindly following the trend may not work now—precision-based, level-driven trading is essential.
Below is a detailed analysis of the chart along with practical, real-world trading strategies that traders can directly apply for Wednesday’s session.
🔍 1. Market Psychology: Strong Trend, Tired Momentum
Over the past few weeks, Nifty has consistently climbed toward the 26,200–26,250 zone. However, each time the index touched this region, sellers reacted strongly, pushing prices back down.
This shows:
- Bulls control the broader structure
- But sellers are actively defending the upper band
- Momentum is slowing down
The upper wicks on recent candles tell a clear story: there’s profit booking happening at the top, and until a confirmed breakout occurs, upward movement will remain choppy.
📈 2. Moving Averages Indicate a Bullish Long-Term Trend
The price is comfortably above all major moving averages—20, 50, 100, and 200 EMA. This alignment forms a classic bullish structure.
However, here is the practical takeaway:
- EMAs show long-term trend strength
- They do not guarantee short-term continuation
- When price reaches the upper channel, EMAs become less useful intraday
Thus, traders must rely more on price action + levels rather than moving average crossovers.
📉 3. RSI Shows Mild Negative Divergence
The RSI is around 55–56, which is neutral.
But the hidden clue is:
- Price made a higher high
- RSI did not make a higher high
This signals negative divergence, indicating that the market might cool off or pull back slightly before attempting a fresh rally.
It’s not a reversal signal—just a caution sign for overenthusiastic buyers.
🔑 4. Key Levels That Matter for Wednesday
Resistance Zone: 26,200 – 26,250
This is the battle zone between bulls and bears. It has repeatedly rejected price.
Breakout Level: 26,260
Crossing this level confirms fresh upside momentum.
Support Zone: 25,900 – 25,950
This is the floor where buyers have been stepping in.
Major Positional Support: 25,590 – 25,600
If Nifty corrects deeper, this is where medium-term buyers return.
Lower Positional Support: 25,416
The final protection zone before trend damage.
📊 5. Practical Trading Strategy for Wednesday (03 Dec 2025)
Below are trade setups that can be executed in real-life trading conditions.
✅ A) Buy Strategy – Only After Breakout Confirmation
Trigger: Buy above 26,260
Targets:
- T1: 26,380
- T2: 26,520
- T3: 26,650
Stop-Loss: 26,130
✔ Why this trade works:
- Avoids buying inside the resistance trap
- Ensures you enter after strength is proven
- Breakout trades align with institutional buying
If the market blasts through 26,260, expect short covering and momentum candles.
❌ B) Sell Strategy – The More Practical Setup for Wednesday
Trigger: Sell below 25,900
Targets:
- T1: 25,760
- T2: 25,600
- T3: 25,420
Stop-Loss: 26,040
✔ Why this trade works:
- 25,900 is the demand floor—once broken, weakness accelerates
- RSI divergence supports a dip
- Sellers will dominate if buyers fail to defend the support
- The trade is cleaner and more reliable than chasing breakouts
This is the highest probability trade of the day.
🎯 6. Which Direction Is More Likely?
Based on the chart:
- Price rejecting resistance
- Bearish candle on Tuesday
- RSI divergence
- Lack of follow-through buying
The probability of a short-term dip is slightly higher than an immediate breakout.
Thus, for Wednesday, the preferred approach is:
👉 Sell on weakness, buy only on strong breakout.
This avoids unnecessary whipsaws and keeps you aligned with where the market is naturally flowing.
📌 7. Practical Trading Notes for Retail Traders
- Avoid trading inside the 26,000–26,250 choppy zone
- Trade only on confirmed level breaks
- Respect SL—this zone is known for traps
- Check global cues before market open
- Avoid emotional overnight positions near resistance
These small habits can save traders from large losses.
🧠 Conclusion
The Nifty50 continues to enjoy a strong broader uptrend, but short-term charts show momentum fatigue. Wednesday’s trading session will be guided entirely by level breaks. A breakout above 26,260 opens the door for a new rally, while a breakdown below 25,900 can trigger a meaningful intraday correction.
For traders, the smartest way to approach this market is clear:
Trade the levels, not the emotions.
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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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