Trade Setup For Nov 12: Nifty Faces Immediate Resistance At 25,850

The NSE Nifty 50 index found immediate resistance at 25,850 levels according to analysts from Bajaj Broking Research on Tuesday.

"Looking ahead, we expect the index to maintain positive bias and gradually head towards the immediate resistance at 25,850 and eventually towards the recent 52-week high of 26,100. On the downside, the support zone of 25,400–25,200 is likely to hold," Bajaj Broking Research said.

A decisive breakout above the resistance mark may trigger fresh buying momentum, according to Dhupesh Dhameja, derivatives research analyst at Samco Securities.

"On the upside, immediate resistance is seen near the 25,800 level. A decisive breakout above this mark could trigger fresh buying momentum and extend the ongoing rally," Dharmeja said. "Conversely, a fall below the 25,350 level would negate the current recovery trend and may invite renewed caution among market participants."

The Nifty index ended the day in trade on a positive note, above the important mark of 25,650.

"Nifty formed a sizable bullish candle on the daily chart, posting a higher high, indicating continued buying interest for the 3rd session in a row from the 50-day extended moving average," Bajaj Broking Research said.

The Nifty Bank index has derived strong support from its 10- and 20-day exponential moving averages and displayed a sharp recovery from its established support zone, according to Dharmeja

"Sustaining above these moving averages and the breakout from the flag pattern underscores growing bullish momentum and short-term optimism," he said.

"Going forward, the index is expected to maintain a positive bias and move towards the all-time high and the upper band of the recent consolidation zone around 58,577. A decisive move above this level could open the door for further upside towards 59,000 in the coming weeks," according to Bajaj Broking.

The NSE Nifty index ended in green, above the important mark of 25,650. Gains in the index were led by InterGlobe Aviation Ltd. and Mahindra & Mahindra Ltd. The Nifty Midcap also ends in green, up 0.5%. Gains in the Nifty Midcap index were led by Vodafone Idea and Bharat Forge.

The rupee rose sixteen paise to 88.57 against the US dollar on Tuesday. The yield on the 10-year bond ended two points lower to 6.51.