Trade Setup For Dec. 8: Nifty Finds Support At 25,900–25,700 After RBI Rate Cut

The NSE Nifty 50's critical support is at 25,900–25,700 levels after the Reserve Bank of India's rate cut, according to analysts from Bajaj Broking Finance.

Crucial support is placed at 25,900–25,700, coinciding with the bullish gap , the 50-day extended moving average and the lower trendline of the channel, the brokerage said.

The Nifty index's trend may remain strong in the short term, with the potential for the Nifty to move towards 26,300-26,440, according to Rupak De, senior technical analyst at LKP Securities.

The index printed a strong bullish candle, marked by a higher high and higher low, indicating a consolidation phase with an upward tilt, according to Bajaj Broking.

"Fresh buying interest has emerged in the last two sessions near the lower boundary of the two-month ascending channel. The broader structure for the past two months remains constructive within this rising channel," the brokerage said.

De recommended a "buying on dips" approach, as long as the index sustains above 26,000.

The Bank Nifty sees support at 59,300-59,000 levels and resistance at 60,000-60,300 levels, according to Osho Krishnan, chief manager of technical and derivative research at Angel One.

"Bank Nifty continued to outperform, registering a strong bullish candle following the RBI rate-cut announcement. We anticipate the index to undergo a period of consolidation and build a foundation within the 58,500–60,100 zone in the near term," Bajaj Broking Research stated.

According to the brokerage, a decisive move above Monday’s high of 60,114 could pave the way for further gains toward 60,400 and subsequently 61,000 in the coming weeks.

"If selling pressure re-emerges and the index decisively breaks below 59,500, it may trigger a deeper correction toward 59,000–58,550, and potentially further downside," Amruta Shinde, technical and derivative analyst at Choice Broking said.

The two-month rally remains well-structured within an upward channel, indicating steady buying interest even at higher levels, Bajaj Broking noted.

"A convincing close above 60,000 would enhance bullish momentum and open the path for additional upside, while an inability to sustain above this level could lead to short-term consolidation or mild weakness," Shinde stated.

"Traders are advised to stay constructive but disciplined, keeping a close watch on 59,500 as a critical support zone and 60,000 as the key resistance level to determine near-term directional cue," the analyst added.

The NSE Nifty 50 snapped its three week gaining streak with a marginal weekly dip while ending in the green during Friday's trade. The Nifty index saw an uptick of 0.59% or 152.70 points to 26,186.45. Wipro Ltd. and Infosys Ltd. lead the gains for the index.