Nifty50 Technical Analysis for 11 December 2025
A Practical, Easy-to-Understand Breakdown for Real Traders
The Nifty50 ended the previous session around 25,758, sliding for the second day in a row as the index faced renewed selling pressure near the 26,000–26,250 resistance zone. This region has turned into a powerful supply area where large players are consistently offloading positions. For traders preparing for Thursday, 11 December 2025, understanding this market behaviour is crucial.
A combination of weakening price action, fading short-term momentum, and increased selling volumes signals that the market is likely entering a short-term corrective phase before attempting any meaningful upside.
Market Structure: What the Chart Is Telling Us
⭐ 1. Nifty Falling Below the 20-Day EMA
Nifty has slipped under the 20-day EMA, often considered the “momentum indicator” by trend followers. When the index closes below this average, it typically reflects slowing buyer interest and growing caution.
⭐ 2. Nearby Supports Coming Into Focus
Two key support zones lie just below the current market price:
- 25,589 – 50-day EMA
- 25,416 – Horizontal Support
A bounce may occur at these levels, but if Nifty breaks below them with strong volume, deeper correction cannot be ruled out.
⭐ 3. Resistance Remains Strong at 26,000–26,250
This region has rejected the index multiple times. Unless Nifty breaks this level decisively, traders should treat it as a sell zone rather than a buying opportunity.
⭐ 4. RSI Shows Diminishing Momentum
The RSI is sitting near 56, still in the neutral zone but curving downward. This indicates that momentum is shifting gradually in favour of sellers.
⭐ 5. Volume Indicates Distribution
The recent red candles are not light-volume dips—they show active distribution. This suggests short-term participants and institutions are reducing long exposure.
Trade Setup for Thursday, 11 December 2025
A Practical and Realistic Guide for Day Traders & Swing Traders
Below are the two most relevant strategies based on current market conditions.
🔻 Strategy 1: Sell-on-Rise (High-Probability Trade)
This is the preferred trade setup for Thursday.
How to Apply This Strategy in Real Trading
- Wait for Nifty to retrace towards the 25,850–25,950 zone.
- Look for any bearish reversal candle — shooting star, engulfing candle, red body closing near lows.
- Initiate a short trade only after confirmation, avoiding impulsive entries.
Targets
- Target 1: 25,600
- Target 2: 25,500
- Target 3: 25,420 (major support zone)
Stop Loss
- Positional SL: 26,060
- Intraday SL: 25,980
Why This Strategy Works
Every rally is being sold into. You are aligning with market sentiment—not fighting it.
🔺 Strategy 2: Buy Only Above 26,000 (Breakout Strategy)
This is a conditional, low-probability but high-upside trade.
When to Enter Long Positions
- Nifty must cross and sustain above 26,000.
- The breakout candle should be strong, green, and backed by volume.
- Avoid weak breakouts, as they tend to trap buyers.
Targets
- Target 1: 26,150
- Target 2: 26,250
- Target 3: 26,320
Stop Loss
- SL: 25,880
Why This Strategy Is Secondary
Unless the market shows strength above resistance, long entries carry unnecessary risk.
Practical Trading Tips for Thursday
✔ Do not chase trades at market open.
Give the market 10–15 minutes to settle and reveal true direction.
✔ Mark your levels before the session starts.
Pre-planning prevents emotional decisions.
✔ Follow the price, not your bias.
Even the strongest resistance can break—but wait for evidence.
✔ Avoid oversized positions.
Volatility near resistance zones can trigger stop-loss hunts.
✔ Track Bank Nifty.
Sharp moves in Bank Nifty often lead broader market trends.
Final Outlook for Nifty50 – 11 December 2025
The market remains bullish on a broader time frame, but the short-term picture has weakened. Until Nifty convincingly crosses 26,000, traders should approach rallies with caution and treat them as favorable selling opportunities.
For Thursday, the sell-on-rise strategy offers the best risk-reward setup.
Upside trades should be attempted only after a confirmed breakout above 26,000.
This balanced approach not only protects capital but also enhances trading accuracy in a market where momentum is shifting.
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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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