TECHNICAL OUTLOOK

The Nifty index witnessed a consolidative yet constructive phase during December ‘25, marked by heightened volatility but no decisive trend reversal. After opening the month near record highs, the index faced profit-booking pressure. The first half of the month witnessed a lower high and lower low price structure, forming a short-term consolidation pattern.

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The latter half witnessed a reversal while a classical breakout pattern such as a double bottom was conclusively triggered. This price behaviour suggests that the market is currently in a time correction rather than a price correction. Furthermore, RSI hovered around the 50-55 zones, indicating sluggish momentum as it traded near its mean level, reflecting the indecision in the overall market.

Technically, Nifty has good support at 25,700 provided by a downward trend line. As long as it sustains above those levels, the outlook remains positive with potential to test 26,600-27,000 levels in the near term. However, on the flip side, any decisive break below 25,700 could trigger profit booking towards 25,300.