Diwali Trade Setup: Nifty Faces Resistance At 26,000–26,300 — Key Levels To Watch For Muhurat Trading

The Indian stock market will remain open for only an hour on Tuesday, for the Diwali muhurat trading between 1:45 pm and 2:45 pm. The one-hour period, which is considered auspicious, will mark the start of trading in the Hindu calendar year of Vikram Samvat 2082.

Trading during the auspicious period is often driven by sentiments rather than technicalities, according to analysts.

The NSE Nifty 50 index faces resistance at 26,000–26,300 levels, according to Ponmudi R, chief executive officer of Enrich Money. "As long as the index holds above 25,750, the bullish momentum is expected to continue," he said.

On the downside, 25,600 remains the support zone, while a break below 25,500 could trigger mild consolidation toward 25,200, according to the expert.

"A sustained move above the 26,000 mark could ignite fresh buying momentum and trigger short-covering, potentially driving the index towards 26,300 in the near term," said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.

On the downside, the analyst saw immediate support placed around 25,600–25,700, where strong demand is expected to limit any short-term corrections.

"The overall sentiment is likely to remain strong, with the potential to reach 26,000–26,200 in the short term. The technical setup remains positive as long as the index stays above 25,700, below which it may move back into consolidation," said Rupak De, senior technical analyst at LKP Securities said.

The 25,750–25,650 zone remains a key “buy-on-dips” region, supported by multiple technical confluences, including the breakout neckline and major swing lows, according to Dhameja.

For Bank Nifty, a sustained move above the 58,200 resistance band could ignite fresh long positions and trigger short covering, potentially propelling the index toward the 58,500 mark in the near term, Dhameja said.

A sustained close above 58,000 could pave the way towards 58,500–59,000, while 57,800 remains the key level to protect the short-term uptrend, according to Ponmudi R.

On the downside, Dhameja identified immediate support between 57,500–57,600, where strong buying interest is likely to limit any short-term pullbacks.

"As long as the index remains above the 57,500 zone, the broader trend stays decisively bullish. A “Buy-on-Dips” strategy remains the preferred approach, with a close above 58,100–58,200 expected to unfold the next leg of the uptrend," Dhameja said.