After witnessing consistent selling pressure over the last five sessions, Nifty finally showed signs of stabilization in the previous trading day. The index paused its decline, absorbed selling pressure at lower levels, and managed to close in positive territory.

This pause does not yet confirm a trend reversal but does suggest exhaustion among aggressive sellers. Markets often attempt a short-covering or relief bounce after such a phase, provided critical supports continue to hold.

From an intraday perspective, the 20-hour EMA is placed near 25,778, while the 40-hour EMA stands higher at around 25,894. Price trading between these averages reflects a short-term consolidation phase after a sharp decline.

On the positional timeframe, the 20-day EMA is located near 26,003 and the 40-day EMA around 25,947. Nifty remains below both these averages, indicating that the broader short-term trend is still under pressure despite the recent pause.

Overall, the EMA structure suggests a corrective phase that is attempting to stabilize rather than a confirmed bullish reversal.

The most important level to monitor for today’s session is 25,670 on an intraday basis. This level acts as the immediate pivot for short-term stability.

On a closing basis, 25,530 is the critical short-term trend reversal level. A sustained close below this zone would negate the recent pause and signal continuation of the corrective move.

If selling pressure resumes, further downside supports are positioned at 25,474 and 25,300. These zones represent deeper demand areas but would only come into play if key supports fail decisively.

On the upside, the first resistance for Nifty is placed near 25,820. A move above this level could trigger a follow-up short-covering rally.

Subsequent resistance is seen near 25,925, followed by a stronger supply zone around 26,070. These levels coincide with declining moving averages and may attract selling interest on rallies.

A decisive move above these resistance zones would be required to shift the broader sentiment from corrective to neutral.

For today’s intraday trading session, 25,670 remains the key level to watch immediately after the opening. If this support manages to hold, Nifty may witness a follow-up short-covering move toward 25,820 and higher resistance levels.

Such a move would indicate that sellers are losing momentum and that the market is attempting a near-term bounce.

However, if 25,670 fails on an intraday basis and the index also slips below 25,530 on a closing basis, the corrective phase is likely to resume. In that scenario, downside targets near 25,474 and lower levels may come into focus.

Traders should remain disciplined and avoid anticipatory positions until price behavior around these levels becomes clear.