🌐 Introduction: A Crucial Day Ahead for Nifty Traders
The Nifty50 closed around 25,898, sitting right at a critical short-term support area on the daily chart. Over the past few sessions, the index has been shifting inside a narrow range, signaling that a breakout or breakdown is around the corner.
Friday’s trading session (12 December 2025) therefore becomes extremely important—not just for intraday traders, but also for positional traders waiting for clarity.
This analysis breaks down the chart in a practical, trader-friendly, real-world manner, helping readers understand not only what the market is showing, but also how to trade it effectively.
📊 Market Structure: Understanding Nifty’s Current Position
The current market structure shows Nifty resting on a crucial demand area. This price behavior often precedes a directional move. Here’s what the daily chart reveals:
1️⃣ Price Is Compressing Inside a Tight Range
For the past two weeks, Nifty has oscillated between:
- Support: 25,850 – 25,780
- Resistance: 26,060 – 26,250
Such compression often leads to a strong move, once price decisively breaks either side.
2️⃣ EMAs Indicate Underlying Strength
Despite recent weakness, the EMAs continue to support the larger uptrend:
- Price is resting on the 20-day EMA, a common pullback zone.
- The 50-day EMA at ~25,600 remains a major cushion.
- 100 & 200 EMAs show a clear long-term upward slope.
This is not a reversal setup—it is a pause inside a long-term bullish structure.
3️⃣ RSI Is Neutral – Direction Will Come from Price Action
The RSI near 49–50 shows the market is neither overbought nor oversold.
This reinforces that traders should rely on price zones, not indicators, for Friday’s decisions.
🧭 Support & Resistance Levels for Friday (12 December 2025)
🔵 Key Support Levels
- 25,850 – 25,780: Crucial short-term demand zone
- 25,600 – 25,420: Major medium-term support backed by 50 EMA
🔴 Key Resistance Levels
- 26,060: Immediate supply zone
- 26,250: Strong resistance and breakout trigger
📌 Practical Trade Setups for Friday (Real Trader Approach)
These setups are based on price behavior around the critical zone.
Instead of trying to predict Nifty’s direction beforehand, the idea is to react to confirmation.
✅ Scenario 1: Bullish Setup – If Nifty Holds 25,850
If Nifty stabilizes above 25,850 during the first 30–45 minutes, it shows buyers are defending the trend.
📥 Buy Zone:
Buy near 25,880 – 25,900, only if support holds.
🎯 Targets:
- Target 1: 26,060
- Target 2: 26,180
- Target 3: 26,250
🛡 Stop-Loss:
25,780
💡 Why This Works (Trader Learning):
The 20-day EMA and previous swing lows converge here.
Markets often test such zones briefly and bounce sharply as weak sellers exit.
❌ Scenario 2: Bearish Setup – If Nifty Breaks Below 25,780
A sustained break below 25,780 indicates loss of short-term strength.
📥 Sell Zone:
Sell below 25,780 after a 15-minute candle closes under it.
🎯 Targets:
- Target 1: 25,590
- Target 2: 25,500
- Target 3: 25,420
🛡 Stop-Loss:
25,920
💡 Why This Works (Trader Learning):
Below this level, Nifty enters a zone where stop-losses of long positions get triggered, accelerating downward momentum.
🎓 Important Trading Lessons for Readers
This blog aims to give readers more than numbers—it provides actionable learning:
- Avoid early trades in the first 5 minutes; the market often traps traders.
- Watch 25,850 closely—it is the day’s most important level.
- Don’t chase breakouts unless volume confirms the move.
- Use strict stop-losses due to the current narrow-range volatility.
- Positional traders should wait for the weekly candle to decide trend continuation.
📈 Which Scenario Is More Probable?
Based on EMAs and the broader trend, a bounce from support (Scenario 1) has a slightly higher probability.
However, the market is in a contraction phase—meaning confirmation is more important than prediction.
🧾 Final Thoughts: What to Expect This Friday
Nifty50 is standing at a crucial decision point.
- If 25,850 holds, expect a rally toward 26,060–26,250.
- If 25,780 breaks, a healthy correction toward 25,500 is likely.
Friday’s session will revolve around how Nifty reacts at this critical support band.
Traders should focus on discipline, confirmation, and controlled position sizing to navigate this setup profitably.
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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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