Nifty Spot Snapshot

Nifty is trading near the 26142 mark, hovering around a critical intraday balance zone. With global markets partially closed and domestic volumes thinning toward year-end, the index is showing controlled price action rather than aggressive directional intent.

The current setup suggests that Nifty is in a decision-making phase where short-term direction will be dictated by its ability to defend immediate support levels during the opening hour.

Moving Average Alignment

On the hourly timeframe, Nifty is trading almost exactly at its 20-hour EMA near 26143, while remaining comfortably above the 40-hour EMA placed near 26080. This reflects a neutral-to-positive intraday structure, with buyers still maintaining control as long as prices hold above the lower average.

From a broader perspective, the index continues to trade above its 20-day EMA at 25993 and well above the 40-day EMA at 25884. This confirms that the medium-term trend remains constructive and that recent consolidations are part of healthy base formation rather than trend deterioration.

Critical Support Levels

The most important intraday support zone for today lies between 26115 and 26040. This range overlaps with short-term moving averages and recent price acceptance levels, making it a decisive area for trend confirmation.

As long as Nifty remains above this support band on a sustained basis, the intraday bias remains positive. Minor dips toward this zone may continue to attract buying interest, especially from positional participants defending higher lows.

However, a break and sustained trade below the 26115–26040 zone would signal exhaustion of intraday momentum. In such a case, the index is likely to transition into a sideways or choppy phase for the remaining part of the session, with downside risk extending toward 25980 and 25900.

Upside Resistance Zones

On the upside, immediate resistance is seen near 26250. A clean move above this level could encourage follow-through buying and push Nifty toward the 26325–26375 band.

If momentum sustains beyond this zone, the index may attempt a stretch toward 26435, though such an extension would likely require broader market participation and strength from heavyweight sectors.

Until these resistance levels are decisively crossed, traders should remain selective and avoid aggressive chasing at higher levels.

Intraday Trading Framework

If Nifty holds above the 26115–26040 support zone, the intraday trend remains bullish with scope for gradual upside toward 26250 and higher resistance levels. This scenario favors buying on dips with tight risk management.

If the support zone fails to hold on a sustained basis, traders should expect a sideways-to-corrective phase. In such conditions, it is prudent to reduce trade frequency and avoid directional overexposure.

A consolidation between 26040 and 26250 would indicate equilibrium between buyers and sellers, favoring range-based strategies rather than trend-following trades.

Investor Takeaway

According to Derivative Pro & Nifty Expert Gulshan Khera, CFP®, year-end markets often reward patience more than aggression. Respecting support zones and reacting only after confirmation is key to protecting capital during such phases.

With the broader trend still intact, traders should focus on tactical entries and disciplined exits rather than attempting to force momentum where it does not exist.

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