NIFTY 50 Daily Market Outlook – 23 December 2025
The Indian stock market continues to display structural strength, and the NIFTY 50 index is no exception. After a consistent upward move over the past few weeks, NIFTY has entered a consolidation phase near its higher levels, which often acts as a preparation zone for the next directional move.
For traders and investors alike, this phase is not about prediction but preparation. Let us decode what the daily chart, momentum indicators, and current market fundamentals are signaling for Tuesday, 23 December 2025.
NIFTY 50 Technical Overview (Daily Chart Analysis)
- Last Traded Price: Around 26,170
- Primary Trend: Bullish
- Short-Term Trend: Consolidation with positive bias
- Moving Averages: Price above 20, 50, 100 & 200 EMA
- RSI (14): Near 58–60 (healthy momentum)
The alignment of all major exponential moving averages in ascending order indicates that the broader trend remains intact. Importantly, NIFTY is not showing signs of panic selling; instead, it is forming a tight range near resistance, which is often seen before continuation.
Why Consolidation Near Highs Is a Positive Sign
Many retail traders mistake sideways movement as weakness. In reality, when an index consolidates near highs:
- Strong hands are holding positions
- Profit booking remains limited
- Fresh buyers wait for confirmation
This behavior usually results in sharp breakouts once resistance is cleared, making patience a key trading skill at this stage.
Key Support and Resistance Levels for NIFTY 50
Important Resistance Zones
- 26,250 – 26,300: Immediate breakout zone
- 26,450 – 26,500: Next bullish expansion target
Critical Support Zones
- 26,050 – 26,000: Short-term buying support
- 25,900: Positional trend safety level
- 25,750: Medium-term trend turns weak below this
These levels are derived from price action behavior, EMA clustering, and previous swing points, making them highly relevant for real trading decisions.
NIFTY 50 Buy or Sell Strategy for Tuesday (23 December 2025)
BUY Strategy – Trade With the Trend
Trade only if price confirms strength. Avoid emotional entries.
- Buy Above: 26,250 (with sustainability)
- Stop Loss: 26,080
- Targets:
- 26,350 (book partial profits)
- 26,450 (trail stop for further upside)
Rationale:
A sustained move above 26,250 would confirm a breakout from consolidation, opening the door for momentum-driven buying. RSI still has room to move higher, supporting this bullish setup.
SELL Strategy – Only for Short-Term Traders
Counter-trend trades must be quick and disciplined.
- Sell Below: 26,000
- Stop Loss: 26,180
- Targets:
- 25,900
- 25,800
Rationale:
A breakdown below 26,000 may trigger short-term profit booking. However, given the broader bullish structure, aggressive shorts should be avoided.
RSI & Momentum Perspective
The Relative Strength Index near 60 suggests:
- Momentum remains positive
- No overbought exhaustion yet
- Upside potential remains open after consolidation
No bearish divergence is visible on the daily timeframe, further strengthening the case for trend continuation.
Current Fundamental Developments Supporting the Market
The technical structure is well-supported by current macro and domestic factors:
- Stable interest rate outlook, reducing fear of sudden liquidity tightening
- Strong SIP and institutional inflows, providing downside cushion
- Positive GDP growth expectations driven by infrastructure, manufacturing, and services
- Year-end portfolio adjustments, which historically favor stability unless disrupted by global shocks
These fundamentals reduce the probability of sharp downside moves in the absence of unexpected negative news.
Trading Guidance for Different Market Participants
Intraday Traders
- Trade only on confirmed breakout or breakdown
- Avoid range-bound price action
Swing Traders
- Maintain long bias with stop loss near 25,900
- Add positions only after breakout confirmation
Long-Term Investors
- The structure does not indicate distribution
- Systematic investment and buy-on-dips remain valid strategies
Final NIFTY 50 Outlook for 23 December 2025
| Price Zone | Expected Behavior |
| Above 26,250 | Bullish continuation |
| 26,000 – 26,250 | Sideways, wait-and-watch |
| Below 26,000 | Short-term corrective phase |
Conclusion
The broader trend remains bullish, but the market is demanding discipline and patience. Traders who respect levels and wait for confirmation are likely to be rewarded more than those chasing every candle.
In trading, clarity pays more than activity.
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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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