📘 Nifty50 Technical Analysis for Thursday, 04 December 2025
A Practical, Real-World Trading Guide for Confident Decision-Making
The Nifty50 ended Wednesday’s session near 25,986, slipping marginally but still holding its ground within a tight consolidation range. Over the past few sessions, the index has been oscillating between a well-respected resistance zone and a firm support area. This kind of sideways action usually reflects indecision—but more importantly, it also signals energy accumulation, a phase that often precedes a sharp directional move.
With the underlying trend still intact but short-term momentum fading, Thursday’s session may become crucial for trend traders and short-term participants looking to position themselves for the next swing.
🔍 Market Structure: The Bigger Picture
Even though the price is struggling near resistance, the overall trend remains bullish:
- Nifty trades comfortably above the 20, 50, 100, and 200-day EMAs
- The upward slope of the EMAs confirms long-term strength
- But short-term candles show hesitation with upper wicks near resistance
This is a classic scenario where the market is bullish, but buyers are waiting for a strong confirmation before committing additional capital.
📌 Key Levels to Track for Thursday
🔺 Resistance Zone: 26,060 – 26,100
This zone has rejected price several times. Sellers are active here, making this the most crucial level for a breakout.
🔻 Immediate Support Zone: 25,590 – 25,620
This range overlaps with the 20-day EMA—a key level that buyers have defended effectively.
🔻 Secondary Support: 25,416 – 25,450
If the immediate support breaks, this is the natural next landing area.
By identifying these zones, traders avoid random entries and focus only on high-probability setups.
📈 Indicators & Market Behaviour
RSI (14): Around 53
Neither overbought nor oversold—reflecting a neutral-to-positive momentum.
Volume:
Volume has significantly reduced in recent sessions. This often implies the market is preparing for a move as participants wait for clarity.
EMA Outlook:
All important EMAs are rising → confirms that the long-term bull market remains intact.
🚀 High-Probability Trading Strategies for Thursday (04 December 2025)
Below are practical, not theoretical, trading setups designed for real-world execution.
⭐ 1. Long (BUY) Trade Setup — Only on a Confirmed Breakout
Buy Trigger:
👉 Enter long only if Nifty crosses and sustains above 26,100
(Wait for a 15-minute candle close above it.)
Targets:
- T1: 26,240
- T2: 26,380
- T3: 26,500 (positional target)
Stop-Loss:
👉 25,980
Why This Works:
- 26,100 is a strong supply zone—breakout means bulls overpower sellers.
- EMA alignment supports upside continuation.
- Post-breakout volatility expansion can create smooth upward moves.
Practical Tips:
- Avoid buying if breakout volume is weak.
- If the market gaps up above resistance, wait for a retest before entering.
- Trail SL to cost once the first target is achieved.
⭐ 2. Short (SELL) Trade Setup — Only if Support Breaks
Sell Trigger:
👉 Enter short if Nifty breaks below 25,590
(This is the key support + 20 EMA line.)
Targets:
- T1: 25,450
- T2: 25,320
- T3: 25,150
Stop-Loss:
👉 25,720
Why This Works:
- A break below support indicates buyers are losing strength.
- The 25,416–25,450 zone becomes an easy target after a clean breakdown.
- Weak volume during consolidation often results in sharp downward pressure once support fails.
Practical Tips:
- Avoid entering on a sudden wick—wait for a proper candle close below support.
- Bank Nifty often leads downside movement; watch its behaviour too.
- For option traders, selling CALLs may be safer than buying PUTs if IV is high.
🧭 Trader’s Mindset for the Day
- Trade confirmation, not anticipation.
The biggest losses occur when traders predict rather than react. - Avoid trading inside the range (25,590–26,100).
This area will likely create noise, not profits. - Position sizing is crucial.
As Nifty sits at a critical level, risk-managed exposure prevents emotional errors. - Breakouts and breakdowns require volume.
Always validate momentum before entering.
🏁 Conclusion
Nifty50 is sitting at a decisive point. The index has compressed between 25,590 and 26,100—a zone that historically precedes a directional burst. Thursday’s session may decide whether Nifty resumes its bullish trend or gives way to a short-term correction.
A breakout above 26,100 could open the door to fresh record highs.
A breakdown below 25,590 may bring swift selling pressure.
Whatever direction the market chooses, disciplined traders who wait for confirmation rather than prediction will come out ahead.
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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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