Will Nifty Sustain Below 25725 or Trigger a Short-Covering Rally?
Nifty is currently trading at 25,454.35 and remains positioned below its short-term and medium-term exponential moving averages. The index is navigating a technically weak zone where resistance clusters are clearly defined and upside momentum remains capped unless key breakout levels are reclaimed.
For 20 February 2026, the most critical level to monitor is 25,725. This level acts as the decisive resistance pivot. As long as Nifty trades below this zone on a closing basis, the short-term structure remains weak with a sell-on-rise bias.
Moving Average Structure
| 20 Hour EMA | 25,663 |
| 40 Hour EMA | 25,680 |
| 20 Day EMA | 25,657 |
| 40 Day EMA | 25,689 |
Price is currently trading below all four EMAs — 20-hour, 40-hour, 20-day and 40-day. When hourly and daily averages cluster together above price, it forms a resistance belt, reinforcing the prevailing weakness.
This confluence around 25,660–25,690 makes the overhead zone technically heavy.
Support & Downside Levels
Primary downside levels are placed at 25,254–25,180. Intermediate levels to monitor include 25,580 and 25,955.
The 25,254–25,180 band represents a key demand pocket. If selling pressure intensifies, this zone may attract buying interest. A clean breakdown below 25,180 would open the door to further downside extension.
The 25,580 and 25,955 levels may act as intraday pivot reactions depending on price structure during the session.
Resistance & Upside Levels
Immediate resistance lies at 25,510–25,585. Next hurdle is 25,641, followed by the key resistance level at 25,725.
The 25,725 level is the short-term trend reversal trigger. Only a sustained close above this level would shift the structure from weak to sideways-to-bullish.
Until then, rallies are likely to face supply pressure near overhead EMA clusters.
Intraday Trading Bias
As long as Nifty remains below 25,725 on a closing basis, the trend remains weak. Sell-on-rise strategy remains active targeting 25,254–25,180 and potentially lower.
Intraday traders should monitor rejection candles near 25,585–25,641. Failure to sustain above these levels reinforces bearish control.
A decisive close above 25,725, supported by strong volume, would indicate short covering and potential upside extension.
Technical Structure Interpretation
Below 25,725 → Weak trend, rallies to be sold.
Above 25,725 close → Sideways to bullish shift.
When price trades below both hourly and daily EMAs simultaneously, it reflects structural supply dominance. However, heavy short positioning near support zones can trigger quick counter-trend rallies.
Discipline around level-based execution becomes crucial in such setups.
For structured intraday derivatives strategies aligned with disciplined levels:
Risk Management Framework
Compressed EMA clustering often leads to whipsaws. Traders should avoid chasing breakout attempts without confirmation.
- Monitor 25,585–25,641 for rejection signals
- Watch hourly close behavior near 25,725
- Track reaction near 25,254 support band
- Align position size with volatility
Failure to hold 25,180 could accelerate downside momentum, while a clean breakout above 25,725 may force short covering.
Investor Takeaway
Nifty remains technically weak below 25,725. Resistance cluster near EMA bands reinforces sell-on-rise bias. Key supports lie at 25,254–25,180. A sustained close above 25,725 is required to shift the structure toward sideways-to-bullish.
Traders should remain level-focused and disciplined, avoiding impulsive entries during volatile sessions.
Explore structured market insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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.
