Trade Setup For Nov. 25: Nifty Short-Term Support At 25,600 After Second Profit-Booking Session

Indian equities witnessed selling pressure on Monday, resulting in the NSE Nifty 50 falling back below the crucial 26,000 mark.

The market took resistance near 26,150 after a positive open and corrected sharply, according to Shrikant Chouhan, head of equity research at Kotak Securities.

Bajaj Broking Research places a strong short-term support in the 25,600 to 25,800 range. If the Nifty moves back above 26,000, it could bounce back towards 26,150 to 26,200, as per Kotak Securities.

Strength above the all-time high of 26,277 will open further upside toward 26,500 levels in the coming sessions, according to Bajaj Broking.

For day traders, 26,000 will act as a crucial trend decider level. As long as the market trades below 26,000, weak sentiment is likely to continue and the index can slip towards 25,900 to 25,850, Kotak Securities said.

The Bank Nifty also formed a bearish candle with a lower high and lower low, reflecting profit booking for the second straight session. Bajaj Broking notes that the index is consolidating above the recent range breakout area of 57,300 to 58,500, with the overall bias remaining positive.

The 58,200 to 58,000 zone is likely to act as a crucial support area, with the previous resistance now expected to serve as support, as per Bajaj Broking. The index is expected to retain its positive momentum and move towards the 59,800 level in the coming weeks, based on the measuring implication of the recent range breakout.

The NSE Nifty 50 closed 108.65 points or 0.42% lower at 25,959.5, while the BSE Sensex ended 331.21 points or 0.39% down at 84,900.71 on Monday.

The midcap index eased by 0.3% and the smallcap index fell by 0.9%. Nifty IT was the lone outperformer. In contrast, Defence and Realty indices were the biggest sectoral losers, shedding over 2%.

Rupee closed 17 paise stronger at 89.24 against US Dollar. On Friday, the local currency had closed 70 paise weaker at 89.41 against the Dollar, after weakening 77 paise to record low.