Nifty Stuck In 200-Point Range: Big Breakout On The Cards?
Despite closing near the session’s high on Thursday, Nifty could not close above the previous day’s peak or the high of the first Shooting Star formed on Tuesday.
After witnessing a corrective phase from recent highs over the past few sessions, the benchmark Nifty 50 staged a sustainable upmove on Thursday, closing the day higher by 135 points (0.54%). The index opened on a positive note and continued to extend gains during the early trade. Although minor intraday dips were observed, they were promptly bought into, helping Nifty close near the day’s high. Notably, the rally was broad-based, with positive market breadth and strong participation from the broader indices.
On the daily chart, Thursday’s price action resulted in the formation of a bullish candle with a higher high and higher low compared to the previous session. To gauge the market’s near-term direction, it is essential to examine the price behaviour of the past three sessions. Following the formation of two consecutive Shooting Star candles, the Nifty has now produced a bullish bar, suggesting a possible shift in sentiment. During this period, the index traded in a tight range of 212 points, with the 20-DMA offering firm support on the downside and the 25,200–25,220 zone acting as a strong resistance.
An encouraging sign is that the bullish candle was accompanied by improved volumes, though still below the average, with most trading activity concentrated in the first and last hours of the session. The index has once again taken support near the 20-DMA for the second consecutive day. On the hourly chart, Nifty also found support along the moving average ribbon, emphasising the strength of the short-term base.
Despite closing near the session’s high, the index could not close above the previous day’s peak or the high of the first Shooting Star formed on Oct. 7, 2025. This level coincides with multiple resistance points on the chart. Hence, unless Nifty decisively breaches this zone, it would be prudent to avoid aggressive long positions and wait for confirmation.
Overall, the 25,008–25,220 range remains crucial for determining directional bias. A breakout beyond this band could trigger an impulsive move in the direction of the breakout. As long as the index trades above the 20-DMA (currently at 25,044), bearish signals are unlikely to gain traction. A decisive move above 25,220 with strong volumes could pave the way for a rally toward 25,430–25,500. Conversely, a sustained fall below the 20-DMA (25,044) may invite a corrective phase toward 24,852, where the 50-DMA is placed.
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