Trade Setup For Dec. 18: Nifty's Slip Below 25,700 Could Trigger Further Correction, Analysts Say
The support level for the Nifty is seen at 25,700-25,550 and resistance at 25,950-26,000.
The extensive sell-off in Indian equities, driven by ongoing foreign capital outflows and a depreciation of the Indian rupee, continues to exert pressure on overall market sentiment.
From a technical standpoint, the Nifty 50 index is currently situated between the 20-day and 50-day exponential moving averages, according to Osho Krishan, analyst at Angel One.
The support level for the Nifty is seen at 25,700-25,550 and resistance at 25,950-26,000.
A decisive slip below 25,700 could trigger a correction towards 25,500–25,400, said Rupak De, senior technical analyst at LKP Securities. The relative strength index at 42 has also maintained a bearish tone.
Nifty Bank
The Nifty Bank index ended the Wednesday session at 58,926.75, down 0.18%, extending losses after the sharp rejection seen near the 59,100 zone.
The index continued to display a subdued and indecisive tone, extending its sequence of lower highs while closing below its 20-day exponential moving average (DEMA)—a development that points to a gradual fading of bullish momentum, according to Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.
"Nifty Bank remains locked in a consolidation phase, with the broader trading range placed between 59,700 on the upside and 58,700 on the downside. However, the ongoing lower-high formation keeps 59,700 as a pivotal threshold for any meaningful improvement in the trend structure," he said.
Momentum indicators continue to reflect a neutral setup, with the RSI hovering close to the 50 mark—underscoring the lack of a clear directional bias and supporting the view of a time-wise consolidation instead of a sharp price correction, Dhameja added.
Market Recap
India's equity benchmarks slipped sharply from the day’s highs amid heightened volatility on Wednesday, extending losses for a third consecutive session. Sentiment remained under pressure due to persistent FPI outflows and continued rupee weakness, along with delays in concluding the India–US trade negotiations.
The BSE Sensex fell 120.21 points, or 0.14%, to close at 84,559.65, while the Nifty declined 41.55 points, or 0.16%, to 25,818.55.
On the sectoral front, the Nifty PSU Bank index advanced 1.3% and the Nifty Metal index rose 0.25%, while the Nifty Consumer Durables and Nifty Media indices dropped 1% and 1.7%, respectively.
Broader markets underperformed, with mid-cap and small-cap indices ending lower by 0.54% and 0.73%, respectively.
