Trade Setup For Dec. 16: Nifty Support At 25,900–25,850 As Index Snaps Winning Streak

The NSE Nifty 50 has found support at 25,900-25,850 levels after ending in the red on Monday, according to Osho Krishnan, chief manager of technical and derivative research at Angel One.

"From a technical standpoint, 25,900-25,850 is anticipated to cushion any shortcomings in the near period, followed by the sacrosanct support of 25,750-25,700 subzone," Krishnan said.

The Nifty index faced resistance near 26,050 before closing slightly lower. The index encountered resistance at the falling trendline on the hourly chart, according to Rupak De, senior technical analyst at LKP Securities.

"On the flip side, 26,150-26,200 still stands as a sturdy hurdle and a definitive breach of this zone could facilitate a move towards new all-time highs of 26,325 in the near future," Krishnan said.

Overall, the index is likely to remain range-bound between 25,900 and 26,100. A decisive move beyond this range could trigger a directional move, according to De.

Krishnan recommended a 'buy-on-dips' strategy to investors.

"We hold a cautiously optimistic view of current market conditions and suggest continuing with a 'Buy-on-Dips' strategy until a decisive breakout is observed. In the meantime, it is prudent to focus on thematic movers that are likely to present opportunities for day traders," he said.

The Bank Nifty will find support at 59,000-58,800 levels and resistance at 59,800-60,000 levels, according to Krishnan.

The index closed with a bullish candlestick on the daily chart, managing to sustain above its 20-day simple moving average, indicating short-term stability, according to De.

"Overall, the setup points toward a phase of consolidation in the coming sessions, with immediate resistance placed near 59,600 and support around 58,800," De said.

"A decisive breakout above the 59,600 zone could act as a trigger, potentially accelerating upside momentum toward the 60,500 levels," he added.

The benchmark equity indices snapped their two-session winning streak on Monday. The NSE Nifty 50 ended 19.65 points or 0.08% lower at 26,027.3, while BSE Sensex closed 54.3 points or 0.06% down at 85,213.36. Intraday, both the Nifty and Sensex fell nearly 0.50%.

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