Charts signal broader, positive undertone

Motilal Oswal Team

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The Nifty 50 staged a strong rebound after a three-day slide, climbing over half a percent on December 11, supported by the US Federal Reserve's third consecutive rate cut.

Despite the recovery, the index could not clear the previous session's peak of 25,950, which aligns with the 10and 20-day EMAs—an important barrier that must be crossed to extend the upmove toward record levels. A sustained breakout above 25,950-26,000, also the Bollinger Bands’ midline, may pave the way for a rally toward the 26,200-26,300 area. On the downside, 25,700 remains a key immediate support, with 25,500 emerging as the next level if this floor is breached.