Nifty50 Daily Technical Analysis for Friday, 05 December 2025
A Practical and Realistic Guide for Traders
The Nifty50 is trading near the psychological 26,000 mark, and price action is forming a tight consolidation just below the recent swing high. This is a classic setup where the market is preparing for a sharp directional move, but traders must wait for confirmation rather than forcing the trade.
With rising moving averages and steady higher lows, the broader trend remains bullish, but momentum is temporarily cooling. Let’s break this down in a detailed yet practical manner.
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Nifty50 is bullish but consolidating. Buy above 26,120 for targets of 26,240–26,420 with a stop-loss at 25,980. Sell below 25,900 for 25,760–25,450 with a stop-loss at 26,040. Trend remains positive unless 25,900 breaks.
1. Understanding the Trend: Bulls Still in Control
Even though Nifty50 is moving sideways, the underlying trend structure shows strength:
- Price remains above 20-day EMA (≈25,694)
- Price is comfortably above 50-day EMA (≈25,358)
- Moving averages are sloping upward
- No major bearish pattern on the daily chart
This means the market is in a pause mode, not a reversal mode.
2. Key Chart Levels for Friday (05.12.2025)
Resistance Zone:
- 26,240 – 26,300
Repeated rejection candles indicate sellers are active here.
Support Zone:
- 25,850 – 25,900
Multiple bounces from this region reflect hidden demand.
Trendline & Moving Average Support:
- 20-day EMA at 25,694
- 50-day EMA at 25,358
These moving averages are crucial for swing traders.
3. Momentum & Volume Insight
- RSI at 55–60: Neutral but stable → Indicates controlled consolidation.
- Low Volumes: Suggest institutions are waiting for a trigger before making strong moves.
This is typical behavior before a large breakout or breakdown.
4. Practical Trading Strategy for Friday (05 December 2025)
Below are realistic, actionable setups suitable for intraday and positional traders.
🔵 BUY Trade Setup (Only Above 26,120)
A breakout above 26,120 signals that buyers are ready to take Nifty toward fresh highs.
Buy Above: 26,120
Targets:
- Target 1: 26,240
- Target 2: 26,320
- Target 3: 26,420
Stop-Loss: 25,980
Practical Entry Method:
- Wait for a 15-minute close above 26,120
- Enter on a retest instead of chasing the breakout candle
- Trail stop-loss as targets are achieved
This reduces the risk of falling for false breakouts, which are common near highs.
🔴 SELL Trade Setup (Only Below 25,900)
A fall below 25,900 indicates a short-term shift in control from bulls to bears.
Sell Below: 25,900
Targets:
- Target 1: 25,760
- Target 2: 25,600
- Target 3: 25,450 (near 50-day EMA)
Stop-Loss: 26,040
Practical Entry Method:
- Avoid selling instantly during a gap-down
- Wait for a breakdown confirmation candle
- Close partial positions at each target
This protects you from panic traps often created by overnight global cues.
5. Pro Tips for Real Traders
The difference between a profitable and unprofitable trader often lies in execution, not analysis. Keep these in mind:
✔ Avoid trading in the first 5 minutes
Opening volatility is often misleading.
✔ Stick to pre-defined levels
Trading without clear levels leads to emotional decisions.
✔ Don’t over-leverage near all-time highs
Volatility spikes quickly when markets are stretched.
✔ React, don’t predict
Let price give you the signal before entering.
6. Final Market Outlook for 05 December 2025
Nifty50 is preparing for a decisive move. The consolidation has become tighter, volumes have dried up, and price is hovering around a major psychological level.
If 26,120 breaks → Expect a bullish continuation.
If 25,900 breaks → A short-term correction becomes likely.
Until one of these levels is broken, the market will remain choppy but controlled.
Frequently Asked Questions (FAQs)
1. Is Nifty50 bullish or bearish for 05 December 2025?
Nifty remains structurally bullish but short-term neutral due to consolidation.
2. What is the buy level for Nifty today?
Buy is above 26,120 with targets up to 26,420.
3. What is the sell level for Nifty today?
Sell is below 25,900 with targets up to 25,450.
4. Is Nifty likely to hit a new all-time high soon?
Yes, if it sustains above 26,120, momentum may push it to new highs.
5. Should beginners trade this setup?
Beginners should trade cautiously, reduce position size, and avoid emotional entries.
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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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