NIFTY 50 Daily Technical Analysis: Buy or Sell Strategy for 24 December 2025
The NIFTY 50 index is trading near the 26,150–26,200 region after spending multiple sessions in a narrow consolidation range. This phase reflects a balance between buyers and sellers rather than aggressive profit booking or panic selling. For traders and short-term investors, such market conditions demand patience, discipline, and clarity around key levels rather than emotional decision-making.
This article explains the current NIFTY 50 technical structure, actionable trade setups for Wednesday, 24 December 2025, and the fundamental factors influencing market sentiment.
NIFTY 50 Trend Analysis and Market Structure
From a daily timeframe perspective, NIFTY continues to trade above its important moving averages. The 20-day and 50-day exponential moving averages are positioned near the 26,000 mark, creating a strong demand zone. Each dip toward this region has been met with buying interest, indicating that bulls are still in control of the broader trend.
The 100-day moving average lies much lower, near the 25,500 zone, reinforcing the fact that the current consolidation is not a trend reversal but a pause within an ongoing uptrend. As long as NIFTY remains above the 25,900–26,000 range, the medium-term bullish structure remains intact.
For traders, this implies that aggressive short selling is risky unless price clearly breaks below support with confirmation.
RSI and Momentum Outlook
The Relative Strength Index on the daily chart is hovering around the 58 level. This is an important observation because it reflects positive momentum without entering overbought territory. Markets that consolidate with RSI holding above 50 often resolve higher once resistance is broken.
There is no visible bearish divergence between price and RSI, which reduces the probability of a sharp corrective fall in the absence of negative global cues.
Volume Analysis and Market Participation
Trading volumes have remained moderate, suggesting the absence of panic or large-scale institutional exit. This typically indicates that market participants are comfortable holding positions at current levels. Low volatility combined with stable volumes often precedes a directional move, making upcoming sessions important from a trading perspective.
Any breakout above resistance or breakdown below support should ideally be accompanied by higher volumes to confirm the move.
NIFTY 50 Key Support and Resistance Levels
On the upside, the 26,250–26,300 zone acts as an immediate resistance area. This level has capped recent advances and needs to be crossed decisively for bullish momentum to accelerate.
On the downside, the 26,000 level remains a crucial short-term support. Below this, the next important support comes in near 25,850, followed by the 25,750 zone, which aligns with previous demand areas.
Practical Trading Strategy for 24 December 2025
For traders looking to take long positions, the ideal approach is to wait for a sustained move above 26,250. A confirmed close above this level on lower timeframes improves the probability of follow-through buying. In such a scenario, upside targets of 26,350 and 26,450 can be considered, with a protective stop loss near 26,050 to manage risk.
Short trades should only be considered if NIFTY breaks below 25,950 with clear weakness. If this happens, the index may drift toward 25,850 and possibly 25,750. A stop loss above 26,150 is essential to avoid getting trapped in false breakdowns.
The most practical lesson here is to avoid trading inside the range and allow price to reveal direction before committing capital.
Current Fundamental Factors Supporting NIFTY 50
From a fundamental perspective, Indian equities continue to benefit from relatively stable macroeconomic conditions. Inflation remains within a manageable band, allowing the Reserve Bank of India to maintain a balanced policy stance. This reduces interest rate uncertainty and supports equity valuations.
Foreign institutional investors have shown selective buying interest in large-cap stocks, which explains the resilience in NIFTY despite intermittent volatility in mid-cap and small-cap segments. Additionally, year-end portfolio adjustments and institutional window dressing often provide support to index heavyweights during the final trading week of December.
While fundamentals do not guarantee a rally, they do reduce the risk of sudden, deep corrections unless triggered by adverse global developments.
Final Outlook for NIFTY 50
NIFTY 50 remains in a consolidation phase within a broader bullish trend. The index is likely preparing for a directional move, but confirmation is still awaited. A breakout above 26,250 can open the door for higher levels, while a breakdown below 25,950 may lead to short-term corrective pressure.
Until clarity emerges, disciplined trading with strict risk management is the most sensible approach, especially in a holiday-impacted, low-volume environment.
MarketShala
Loved this analysis? Stay ahead in the markets with Markshala’s expert insights.
Get deeper market research, trade setups, and investing guidance delivered straight to your inbox.
👉 For collaborations & queries: somnath@markshala.com
👉 WhatsApp Connect: +91 8209177236
Click Here to join our partner Equity / Other Capital Market Investing Platform and unlock MarketShala’s expert-backed investing guidance. You may also join our WhatsApp community MarketShalians to stay tuned with regular updates in your wealth creation journey.
Click Here to join our partner in Crypto Currency Market Investing Platform and unlock MarketShala’s expert-backed investing guidance.
Stay informed. Stay profitable.
– Team Markshala
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.
***********
|| ॐ नमः शिवाय ||