Nifty50 Technical Analysis for Tuesday, 09 December 2025
A Clear and Practical Guide for Traders, Investors, and Market Enthusiasts
The Nifty50 ended the previous trading session near 25,960, displaying a classic tug-of-war between bulls and bears. This zone—between 26,060 on the upside and 25,900 on the downside—has become the battleground for short-term market control. Although the index remains in an upward structure on a broader-timeframe view, the price action within this narrow band suggests that the market is preparing for a decisive move.
Understanding this setup is extremely valuable for traders who prefer clarity over guesswork. Let’s break down the Nifty50 chart with a practical, strategy-driven approach.
1. Market Structure: A Tight Range That Signals a Big Move Ahead
For several sessions, Nifty50 has been consolidating inside a sideways price band.
- Resistance: 26,060 → 26,250
- Support: 25,900 → 25,720
This compression usually leads to an expansion move.
In other words — a trending day may be coming soon, and disciplined traders have an opportunity to take advantage of it.
The market has tried to break out above 26,250 multiple times but failed to sustain. On the downside, 25,900 has consistently attracted buying interest. These repeated rejections confirm that the index is coiling for a directional breakout.
2. Candlestick Behaviour: Buyers & Sellers in a Stalemate
The recent candles show:
- Rejection near the higher levels
- Buying support at lower levels
- Smaller bodies with upper wicks
This structure communicates indecision but not weakness. It tells us the market is waiting for a catalyst, and once that arrives, volatility will expand.
3. Moving Averages Indicate Controlled Consolidation
Nifty remains comfortably above the:
- 20 EMA (approx. 25,590)
- 50 EMA
- 100 EMA
This confirms that the medium-term trend remains intact. The short-term pullback from 26,250 is healthy because price correction is happening without damaging the broader trend.
4. RSI Indicator: A Neutral Momentum Zone
The RSI hovering around 51–55 shows a lack of clear momentum. This supports the idea that the market is consolidating, not reversing.
Neutral RSI often precedes a sharp directional move when price moves out of a range.
5. Practical Trading Strategy for Tuesday (09 December 2025)
This is where the real trading value lies. Below are the two actionable trade setups, complete with triggers, targets, stop losses, and the psychology behind them.
✅ BUY Strategy — Only Above 26,060
Why this level?
Because 26,060 has acted as a supply zone. A breakout means buyers are finally strong enough to overcome the barrier.
Buy Trigger:
🔼 Buy above 26,060
Targets:
- Target 1: 26,150
- Target 2: 26,250
- Target 3: 26,320 (if volume supports the breakout)
Stop Loss:
🔻 25,950
Trading Logic:
- Above 26,060, short covering is likely.
- Fresh buyers waiting for confirmation will join the move.
- It gives a clean upside structure with a favourable risk-to-reward ratio.
Pro Tip:
Book partial profits at 26,150 and trail your stop loss aggressively. This protects profits while allowing continuation trades.
❌ SELL Strategy — Only Below 25,900
Why this level?
Because 25,900 has repeatedly acted as a demand zone. If it breaks, the market hands control to sellers.
Sell Trigger:
🔽 Sell below 25,900
Targets:
- Target 1: 25,720
- Target 2: 25,590
- Target 3: 25,416
Stop Loss:
🔺 26,010
Trading Logic:
- Below 25,900, weak longs exit, accelerating the fall.
- Sellers get momentum for the first time after days of consolidation.
- Breakdown moves generally give fast intraday opportunities.
Pro Tip:
Exit 50% at 25,720, and allow the rest to ride the trend with a revised stop loss above resistance.
6. Practical Market Guidance for New Traders
This kind of consolidation phase is where most traders lose money not because of the market — but because of impatience.
Avoid These Mistakes:
❌ Entering inside the range
❌ Trading without stop loss
❌ Predicting tops and bottoms
❌ Overtrading in volatility gaps
Follow These Simple Rules:
✔ Trade levels, not emotions
✔ Take positions only after confirmation
✔ Use strict stop losses
✔ Respect the signals of the range
If you follow levels and risk management, this market becomes profitable instead of unpredictable.
Conclusion: What Traders Should Expect on Tuesday
Nifty50 is at a point where a directional breakout is highly possible, but the levels are extremely important.
- A move above 26,060 opens the path to test and possibly break 26,250.
- A fall below 25,900 invites selling pressure toward 25,720 and 25,590.
Inside this zone, expect choppiness and false signals.
Smart traders will wait.
Impatient traders will guess.
The market always rewards the first group.
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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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