Nifty – Technical Analysis (Based on EOD data: 16 Dec 2025)

Nifty closed at 15,42x zone (as per provided data) with a 0.89% decline, indicating short-term profit booking after a strong up-move. Despite the recent dip, the overall market structure remains bullish, supported by strength across short-, medium- and long-term trends.

Trend Structure

All three trend readings remain BULLISH, confirming that the recent weakness is corrective in nature rather than trend-changing. The index has delivered double-digit gains over the last three months and strong one-year returns, underlining the dominance of higher-timeframe bulls.

Moving Averages & Support Zone

Nifty is currently trading near the 20-day SMA (1546) and marginally above the 20-day EMA (1537), which is acting as an immediate support zone.

• The 34-day and 50-day averages around 1520–1500 form a strong demand belt.

• The rising 200-day average near 1405–1425 confirms the long-term bullish trend remains intact.

As long as Nifty holds above the 1520–1500 zone, the broader uptrend is safe.

Momentum & Oscillators

• RSI at 55.67 reflects a neutral-to-positive bias, with no overbought stress.

• MACD remains positive, though the negative histogram suggests short-term loss of momentum and consolidation.

• ADX at 27.35 signals a healthy trend, while the near-equal DMI+ and DMI− indicate range-bound action in the near term.

• CCI (-24.87) and Williams %R (-61) point to mild cooling, not a breakdown.

Volatility & Band Analysis

Nifty is hovering around the middle Bollinger Band (1546) with the lower band placed near 1520. This setup typically supports sideways-to-positive consolidation before the next directional move.
The Parabolic SAR at 1562.86 is acting as an immediate upside hurdle.

Key Levels to Watch

Supports:

• Immediate: 1536–1531

• Strong: 1520–1505

Resistances:

• Immediate: 1557–1563

• Higher: 1570–1583

A decisive close above 1563 can reignite upside momentum towards 1570–1585, while a breakdown below 1520 could extend the corrective phase, though still within a bullish structure.

Outlook

Nifty remains in a buy-on-dips zone, with the current phase likely to be time-wise consolidation rather than a deep correction. As long as the index sustains above 1520–1500, the medium- to long-term bullish outlook stays intact. Fresh strength is expected once 1560+ levels are reclaimed.