Nifty 75-Minute Chart: Is the Index Retesting Support or Preparing for Another Leg Up?
The Nifty 50 index has recently completed a strong vertical rise after breaking out of a triangular contraction pattern that lasted from July to mid-October. As prices pull back from recent highs, traders are now watching whether this move is simply a healthy retest of support or the beginning of a deeper correction.
Formation of the Triangular Contraction
The earlier contraction on the 75-minute chart showed progressively tighter price swings — a hallmark of energy build-up before a major directional breakout. When the breakout occurred in mid-October, it triggered a sharp upward thrust, catching short sellers off guard and giving rise to a near-vertical move.
Now, the index is retracing to test crucial support areas. The question before traders is whether these levels will act as a springboard for another rally or if the market will revisit lower zones to shake out weak hands.
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Current Support and Possible Scenarios
Based on the chart, two key support zones are visible:
| Support Zone | Approx. Level | Significance |
|---|---|---|
| Primary Support | 25,850 | Volume Point of Control; may act as strong base for rebound. |
| Secondary Support | 25,330 | Old breakout zone of triangle formation; next test if 25,850 fails. |
If 25,850 holds, Nifty could resume its upward journey toward previous highs, albeit through a gradual, grinding structure characterized by sideways volatility. However, a decisive break below 25,850 may invite short-term weakness, with 25,330 acting as the next potential demand area.
Technical Insights for Traders
- Volume Analysis: Current volumes are subdued, indicating absence of aggressive selling pressure — a positive sign for bulls.
- Price Action: Candlestick patterns on the lower time frame show small-bodied candles, reflecting indecision and absorption near support zones.
- Momentum Indicator: RSI has cooled off from overbought levels, allowing room for a fresh upward leg if buyers regain control.
- Volatility: Range-bound volatility is likely as Nifty consolidates near its previous breakout levels.
Key Technical Metrics Summary
| Indicator | Current Reading | Interpretation |
|---|---|---|
| RSI | 58 | Moderate; indicates neutral momentum. |
| Volume | Decreasing | Suggests absence of panic selling. |
| Trendline Support | 25,800–25,900 | Crucial zone for continuation bias. |
| MACD | Flat | Consolidation phase likely. |
In short, the 25,850 level acts as the dividing line between bullish continuation and short-term weakness. As long as prices respect this zone, the broader uptrend remains intact.
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SWOT Analysis: Nifty Technical Setup
| Factor | Observation |
|---|---|
| Strength | Healthy uptrend continuation structure; lack of heavy selling volumes. |
| Weakness | Failure to cross swing highs may lead to short-term fatigue. |
| Opportunity | A bounce from 25,850 can provide low-risk entries for positional trades. |
| Threat | Global sentiment reversal or FII outflows could accelerate profit booking. |
Final Outlook
The index remains in a structural uptrend but faces consolidation pressure near higher zones. The next few sessions will be critical — holding above 25,850 could confirm strength and set up a gradual move back toward prior highs, while a break below may extend correction to 25,330. Traders should track price-volume convergence and avoid over-leverage during this range phase.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, emphasizes that current Nifty price action reflects a healthy pause within an ongoing bull market. The 25,850 zone acts as the pulse of momentum — sustaining above it keeps bullish traders in control. Tactical traders may play range setups with tight stop losses, while investors should focus on core sectoral strength. Discover more high-accuracy educational analyses at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Nifty Technicals
- How to identify valid triangle breakouts using volume analysis?
- What defines a retest versus a reversal in Nifty charts?
- How can RSI and MACD together confirm support strength?
- Why does volume often drop during consolidations after major breakouts?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
