Introduction
The Nifty 50 index struggled to maintain upward momentum in today’s trading session, ending marginally lower after early attempts at recovery were met with fresh selling pressure. Market sentiment was cautious, influenced by weak global cues and selective profit-booking. Despite intraday rebounds, the index failed to hold above critical resistance zones, hinting at continued short-term weakness. With both daily and intraday charts signaling consolidation and key support retests, traders are closely watching if the bulls can defend the 25,000 mark.
Daily Chart Perspective: Support Retest Amid Weak Momentum
On the daily timeframe, Nifty 50 slipped by 0.40% (-100.60 points) to close at 25,111.45, extending its mild corrective phase. Price action showed a rejection near the 20-day SMA at 25,325, indicating sellers’ dominance at higher levels. Bollinger Bands continue to narrow, suggesting a consolidation phase is underway after the recent sharp rally in June.
Key supports remain intact near the lower Bollinger Band at 24,931, while immediate resistance lies around 25,400–25,600. Volumes remained moderate, reflecting a wait-and-watch sentiment among institutional players.
From a medium-term perspective, the structure remains bullish as long as 24,900–25,000 holds. However, repeated retests of this zone could weaken the support and open room for a deeper correction towards 24,600.
Nifty 50 Daily Chart with Bollinger Bands showing support near 24,931 and resistance near 25,325.
Consolidation Outlook on Daily Timeframe
The daily chart highlights a sideways channel between 24,900–25,400, where neither bulls nor bears have shown decisive control. A breakout above 25,400 would likely trigger fresh momentum towards 25,800, while a breakdown below 24,900 could drag the index to the next major support at 23,224.
Market analysts suggest keeping a close watch on earnings season updates, as upcoming results from banking and IT heavyweights could dictate the next big move. For now, Nifty remains in a pause mode, digesting previous gains.
Half-Hour Chart Update: Trendline Breakdown Signals Weakness
On the half-hour chart, Nifty 50 displayed a failed recovery attempt, followed by a breakdown below the short-term rising trendline. Earlier in the day, the index rebounded from 25,000 levels towards 25,250, but sellers re-entered near the upper Bollinger Band resistance, pushing it back towards 25,109.50 by the close.
This intraday breakdown is significant because it negates the earlier bullish attempt seen on the hourly chart. The middle Bollinger Band at 25,182 now acts as immediate resistance, while the lower band is near 25,113–25,000. If the index breaches 25,100 decisively, it could accelerate selling pressure towards 24,950–24,900.
Nifty 50 Half-Hour Chart showing trendline breakdown and support zone retest around 25,100.
Intraday Dynamics: Bears Regain Control
In the last few sessions, intraday charts showed signs of a short-term pullback from 25,000, but today’s half-hour price action suggests the rebound lacked strength. Volume spikes during the decline indicate that bears are still active at higher levels.
Key intraday resistance zones are now 25,200–25,250. Unless Nifty reclaims this area with strong buying, the sentiment will remain cautious. Conversely, sustained trading below 25,100 could lead to a deeper test of the psychological 25,000 mark, which has been acting as a strong base.
Short-term traders should remain nimble, focusing on quick trades within the 25,000–25,250 range. For positional buyers, it’s better to wait for a decisive close above 25,400 to confirm renewed bullish momentum.
Future Outlook: Will Nifty Consolidate Further or Break Lower?
Looking ahead, the market could see further consolidation as it digests global economic data, crude oil price trends, and domestic earnings. The broader structure remains bullish, but the immediate trend has turned sideways to negative in the short term.
If 25,000 holds, we may witness a technical bounce towards 25,300–25,400 in the coming sessions. However, if this level breaks, the next logical support lies near 24,900–24,800, beyond which 24,600 becomes critical.
Market sentiment is likely to remain cautious until a clear breakout or breakdown occurs. Traders should focus on sector rotation—banking, auto, and FMCG may provide selective opportunities, while IT stocks might remain under pressure amid global uncertainty.
Summary
Today’s Nifty 50 session highlighted failed intraday recovery attempts and a trendline breakdown on the half-hour chart, signaling near-term weakness. The index continues to oscillate within a sideways zone of 25,000–25,400, awaiting a strong directional trigger.
Bulls need to defend 25,000 to avoid a deeper correction, while a decisive move above 25,250–25,300 is required to revive momentum. Until then, traders should adopt a range-bound strategy with strict stop-losses.
Disclaimer:
This analysis is for educational and informational purposes only. It should not be considered financial or investment advice. Please consult a certified financial advisor before making trading decisions.
