Nifty 50 : 27 May 2025: RSI Divergence, Key Breakout Levels & Expiry Strategy | 200–300 Points Move Incoming!

Technical Analysis Summary (Daily Timeframe)

Chart Pattern Observation:

• Resistance Zone: 25,100–25,200 — multiple rejections visible here since April '25.
• Current Price: 25,001.15, testing this resistance zone again.
• Price Action: Higher lows since March, creating an ascending structure.

RSI (Relative Strength Index):

• Current RSI near 65–68
• Approaching overbought but not yet extreme
• Previous Bearish Divergence warnings played out; no fresh divergence yet

Moving Averages (MA Ribbon):

• Price above 20, 50, 100, 200 DMA — strong bullish structure
• 20 EMA and 50 EMA positively aligned (Golden Cross-like)
• All MAs rising, supporting upward trend continuation

MACD:

• MACD above Signal line
• Histogram narrowing — suggesting either consolidation or minor correction. Watch for a fresh MACD bullish crossover on lower timeframes (1H, 30M) for intraday long confirmation.

Stochastic:

• In overbought zone (above 80)
• Fast and slow lines showing mild divergence

Any cross-down here may trigger a 150–200 pts dip before resuming trend.

CCI (Commodity Channel Index):

• Currently in +110 zone — bullish, but overbought territory
• Past 4 occurrences at this level led to pullbacks of 150–250 points

Bollinger Bands:

• Price hugging upper band — breakout attempt visible
• Bands widening — volatility expansion ahead

Close above 25,200 can trigger a sharp 200–300 points move

Trade Expiry Strategy for 29 May 2025 (Expiry)

 If Breakout Above 25,200:

Buy Nifty 25,200 CE (Target: 25,400 / 25,500)

 If Rejection at 25,200 / RSI Turns:

Key Warning Signs

• RSI nearing overbought
• Stochastic overbought
• Bollinger Band upper test
• Resistance zone historically heavy supply

Avoid aggressive longs without a decisive close above 25,200 with volume.

Possible Breakout Scenario

1-Hour timeframe intraday scalping plan for 29 May 2025 expiry on NIFTY 50 .  key pivot levels, support-resistance bands, RSI/MACD/Stochastic readouts, and add option chain OI cues for context.

NIFTY 50 Intraday Scalping Plan (1H Timeframe)

Key Pivot Levels:

Indicators Status (1H)

• RSI: 63 — neutral bullish bias -  Watch for move above 70 or dip below 55
• MACD: Positive crossover holding, histogram flat. -  Sharp rise above zero line = long scalp trigger
• Stochastic: At 80 — overbought - Cross down = short scalp opportunity
• CCI: Around +110 - Above 100 favors long scalps, below 50 calls for caution
• Bollinger Bands: Price nearing upper band at 25,090 - Bands expanding — breakout volatility incoming

Option Chain OI Cues (as per latest data)

Intraday Scalping Setups

Breakout Scalping:

Buy above 25,110

• Target: 25,190 / 25,250
• SL: 25,060
• CE 25,100 or CE 25,200 options
• Spot/Futures scalp for 60–90 points

Rejection Scalping:

Sell below 24,950

• Target: 24,870 / 24,800
• SL: 25,020
• PE 25,000 or PE 24,900 options
• Futures short with tight SL

Warning Zones:

As we head into the crucial expiry session on 27 May 2025, Nifty 50 is poised at a decisive juncture. While bullish momentum persists, caution is warranted due to emerging RSI divergence, flattening MACD, and overbought Stochastic readings. A breakout above 25,200 could trigger a sharp upside, whereas a failure to sustain may invite profit booking towards 24,800-24,700 zones. Traders should stay agile, manage positions with strict stop losses, and prefer option strategies to navigate expiry day volatility. Keep a close watch on FTSE 100 and global cues for early hints on directional bias. 

27 May 2025:  Nifty 50 expiry trade setups, RSI divergence, MACD signals, option chain cues, and scalping strategy for intraday traders in India, USA, UK, and Japan. 

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