Nifty 50 Daily Technical Analysis for Thursday, 18 December 2025
Buy–Sell Strategy, Support–Resistance & Stop Loss Explained
The Nifty 50 index is currently passing through a consolidation phase after a strong upward move, which is a healthy sign for a trending market. Instead of reacting emotionally to daily price fluctuations, this is the phase where disciplined traders plan trades around key technical levels.
As per the latest daily close near 25,818, Nifty is showing short-term hesitation but medium-term strength, making level-based trading crucial for Thursday’s session.
Overall Trend Analysis
- Medium-term trend: Positive
- Short-term trend: Sideways to mildly weak
- Market structure: Higher-highs intact, but momentum cooling
👉 This tells us that the market is not bearish yet; it is simply digesting recent gains.
EMA Analysis – What the Moving Averages Indicate
- 20 EMA (~25,950): Immediate resistance
- 50 EMA (~25,765): Crucial short-term support
- 100 EMA (~25,450): Strong positional support
- 200 EMA (~24,975): Long-term trend base
Practical Interpretation
As long as Nifty stays above the 50 EMA, selling pressure is likely to remain limited. Any move below it, however, may increase short-term volatility.
RSI Analysis – Momentum Check
- RSI (14) is around 46–47
- Below the 50 mark, indicating loss of bullish momentum
- No oversold signal yet
👉 This suggests range-bound activity rather than a sharp trend reversal.
Key Support and Resistance Levels
Resistance Zones
- 25,950 – 26,050: Immediate hurdle
- 26,200 – 26,300: Major resistance zone
Support Zones
- 25,750 – 25,700: Immediate support
- 25,450 – 25,400: Strong demand zone
These levels should be treated as decision points, not prediction points.
Nifty 50 Trading Strategy for 18 December 2025
✅ Buy Strategy – Trade the Strength
This strategy suits traders who prefer confirmation before entering.
- Buy Above: 25,950 (sustaining above this level)
- Target 1: 26,100
- Target 2: 26,250
- Stop Loss: 25,750
📌 Practical Tip:
Book partial profits at Target 1 and trail stop loss to entry to protect capital.
❌ Sell Strategy – Trade the Breakdown
This strategy is valid only if support breaks convincingly.
- Sell Below: 25,700
- Target 1: 25,550
- Target 2: 25,400
- Stop Loss: 25,900
📌 Practical Tip:
Avoid selling within the range. Wait for a clear breakdown to avoid false signals.
Common Mistakes Traders Should Avoid
- Overtrading inside the 25,750–25,950 consolidation zone
- Entering trades without confirmation
- Ignoring stop loss due to market noise or emotions
Final Outlook
Nifty 50 remains structurally strong, but short-term momentum is neutral. The market is preparing for its next directional move, and traders should focus on breakout or breakdown strategies rather than random entries.
👉 For Thursday, the mantra is simple:
“Trade levels, manage risk, and let the market confirm the direction.”
MarketShala
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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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