Nifty50 Technical Outlook for 20-Oct-2025
Price Action Snapshot:
✅ Last close: 25,709.85 (+0.49%)
✅ Price has broken above recent swing highs and is testing a key resistance zone near 25,750 – 25,800.
✅ Candle shows bullish continuation with a strong body.
✅ Volume is rising, indicating buyer participation.
✅ RSI around 69–70 – near overbought but still showing strength (no bearish divergence yet).
✅ Key Technical Observations
1️⃣ Structure & Trend
- Nifty is in a strong uptrend (higher highs, higher lows).
- All major EMAs (20, 50, 100, 200) are sloping upward.
- Price is consistently holding above the 20 EMA, showing short-term strength.
- The previous sideways consolidation has broken to the upside → trend continuation scenario.
2️⃣ Resistance Zone (Crucial!)
- Immediate resistance: 25,750 – 25,800
If Nifty sustains above this, new all-time high breakout momentum may follow.
3️⃣ Support Zone
- Immediate support: 25,440 – 25,500 (recent breakout zone)
- Deeper support: 25,200 (20 EMA)
- Major support: 24,600 (200 EMA + historical zone)
✅ Trade Plan for Monday
🟢 If Market Strength Continues – BUY on Sustained Breakout
Entry Trigger:
✔ Buy above 25,750 – 25,800 after 15-min or daily close confirmation.
Stop-Loss:
🔹 Below 25,550 (recent swing low / breakout base)
(Approx. 200 points SL – safe and logical)
Targets:
🎯 T1: 25,950
🎯 T2: 26,150 – 26,200
Trade Logic:
Breakout + rising volume + bullish structure = trend following opportunity. ✅ Best choice if markets remain strong on Monday.
🔴 If Price Rejects Resistance – SELL on Bearish Reversal Candle
Entry Trigger:
✔ Short only if Nifty gives a bearish reversal candle near 25,750 – 25,800 (shooting star / bearish engulfing / long wick rejection)
Stop-Loss:
🔹 Above 25,850
Targets:
🎯 T1: 25,500 (support zone)
🎯 T2: 25,300 (20 EMA zone)
Trade Logic:
This level has acted as a supply zone earlier. A sharp rejection may give a short-term pullback. ⚠ Note: This is a counter-trend trade → take only with confirmation and small position size.
⚪ If Market Opens Flat and Moves Sideways – WAIT
- Nifty is at a decision point.
- Avoid trading blindly in the first hour.
- Let the market show clear direction.
- Only trade confirmed breakout or rejection setups.
✅ RSI & Volume Validation
- RSI near 70 suggests strong momentum → not a sell signal by itself.
- No bearish divergence visible → trend still healthy.
- Rising volume supports the current breakout attempt.
✅ My Expert View: What Should a Trader Prefer?
👉 Primary Bias: BULLISH
As long as Nifty holds above 25,500, bulls are in full control.
Buying on breakout or on minor dips is the safer and more trend-aligned trade.
👉 Avoid aggressive selling unless a strong rejection candle forms with volume at resistance.
✅ Suggested Strategy
✔ Be patient in the first hour.
✔ Follow levels, not emotions.
✔ Trade with confirmation, not prediction.
✔ Respect stop-loss strictly.
✅ Stop-Loss Discipline (VERY IMPORTANT!)
- In uptrends, markets look safest before they correct.
- Always define risk BEFORE entering.
- No stop-loss = no professional trading.
✅ Summary (One-Liner)
Nifty is at a resistance breakout zone. Buy above 25,750 with 25,550 stop-loss for 26,000+, but if rejection occurs, short with tight SL for a pullback. Trend favors bulls overall.
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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