Practical Buy & Sell Strategy with Stop Loss
The Nifty 50 index is currently passing through a phase that every serious trader must understand well — a strong market that has paused, not reversed. Such periods often confuse traders because price movement slows down, volatility reduces, and false signals increase. However, this is also where disciplined traders gain clarity and edge.
As per the latest daily close, Nifty is trading near the 26,140 level. The broader trend remains positive, but the market is clearly waiting for fresh triggers before making its next directional move.
Nifty 50 Trend Analysis on Daily Chart
From a technical perspective, the index continues to trade above its 50-day and 100-day exponential moving averages. This confirms that medium-term buyers are still active and that the overall structure remains bullish.
At the same time, the 20-day EMA has started to move sideways. This usually signals consolidation rather than weakness. Markets often behave this way after a sharp rally, where price takes time to digest gains before the next move.
The RSI on the daily chart is hovering around the 57–58 zone. This level indicates healthy momentum without any signs of exhaustion. There is no overbought condition, which means the market still has space to move higher if price action supports it.
Volume data also supports this view. Participation is average, suggesting traders are cautious and waiting for confirmation instead of chasing moves.
Key Support and Resistance Levels for Nifty 50
The zone between 26,240 and 26,300 has emerged as a strong resistance area. Multiple attempts to cross this level have faced selling pressure. Unless this zone is decisively broken, upside may remain capped.
On the downside, the 26,000 to 26,050 area is acting as immediate support. This zone coincides with short-term moving averages and recent demand. A breakdown below this area would invite short-term selling.
The most important support for the trend lies near 25,800 to 25,750. A daily close below this level would indicate deeper correction and trend fatigue.
Nifty 50 Buy Strategy for Friday, 26 December 2025
Buying should be done only if the market shows strength. The idea is not to predict but to react once price confirms.
A buy trade can be considered only if Nifty sustains above 26,250. This level marks a breakout from the current consolidation range.
The ideal buying zone would be between 26,260 and 26,280. A strict stop loss should be placed near 26,090 to protect capital against false breakouts.
Initial profit booking can be planned around 26,380. If momentum expands and global cues remain supportive, the next upside target can be near 26,500.
This setup suits intraday traders as well as positional traders who prefer partial profit booking instead of holding blindly.
Nifty 50 Sell Strategy Only on Breakdown
Short trades should be attempted only if support fails. Selling just because the market looks tired can be costly in a structurally strong index.
If Nifty breaks and sustains below 26,000, short positions may be considered around 25,980 to 25,950.
A stop loss near 26,160 is essential, as the market can reverse quickly during low-volume sessions.
Downside targets for this trade lie near 25,850 initially, followed by 25,720 if selling pressure intensifies.
This strategy is meant for traders who follow breakdown-based trading rather than emotional top-fishing.
Current Fundamental Outlook Supporting the Market
From a fundamental angle, Indian markets continue to enjoy support from strong domestic liquidity and stable macroeconomic indicators. Recent global central bank commentary suggests a more cautious and data-driven approach to interest rate decisions, which has reduced panic across global equity markets.
Year-end trading sessions generally see lower volumes due to institutional portfolio adjustments. This can lead to sudden intraday moves but not necessarily sustainable trends.
Sector-wise, banking, infrastructure, and capital goods continue to show stable earnings expectations. This limits the probability of a sharp market breakdown unless triggered by an external global shock.
Trading Psychology and Risk Management
For Friday, patience will be the biggest asset for traders. If Nifty remains stuck between 26,000 and 26,250, aggressive trading should be avoided. The real opportunity lies only when price decisively moves out of this range.
Trading should always be confirmation-based. Respecting stop losses is non-negotiable, especially during year-end sessions when false breakouts and whipsaws are common.
Final Verdict on Nifty 50
Nifty 50 is not showing weakness, but it is demanding clarity. The broader trend remains positive, yet short-term consolidation is testing traders’ discipline. Those who wait for confirmation and align their trades with structure will benefit, while impulsive traders may struggle.
The key for Friday is simple: let the market decide the direction, and then participate with controlled risk.
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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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