Nifty 50 Daily Technical Outlook: Key Breakout Levels, RSI-MACD Insights & Trade Strategy for 26 May 2025
As the Indian stock market scales new highs in 2025, the Nifty 50 continues to be in focus for traders and investors alike. In this blog post, we dive deep into the latest technical chart of the Nifty 50 index, analyzing crucial breakout levels, RSI and MACD signals, and Fibonacci retracement zones. Read on to discover potential trade setups and strategies for the coming sessions.
Follow Me on TwitterTechnical Indicators & Analysis:
Fibonacci Retracement Levels:
- 0% at ₹21,728.15
- 38.2% at ₹23,477.25
- 61.8% at ₹24,557.85
- 78.6% at ₹25,327.10
Current Price: ₹24,853.15
Observation: The Nifty 50 has reclaimed the 61.8% retracement at ₹24,557.85 and is now testing resistance between this level and the 78.6% retracement at ₹25,327.10. A breakout above ₹25,327 could trigger a fresh rally.
RSI (Relative Strength Index):
Current RSI: 57-60 zone
Interpretation: RSI has recently cooled off from overbought levels and is now consolidating around 60. A bounce above 65 would reaffirm bullish strength, while a dip below 50 may signal short-term weakness.
MACD (Moving Average Convergence Divergence):
Interpretation: MACD remains in bullish territory, but momentum has slowed. A bearish crossover would warrant caution for long positions.
Key Breakout and Support Levels:
| Level Type | ⚙ Price (₹) |
|---|---|
| Immediate Resistance | 24,950 |
| Major Resistance | 25,327 (78.6% Fibonacci) |
| Support | 24,557 (61.8% Fibonacci) |
| Major Support | 23,477 (38.2% Fibonacci) |
Trade Strategy Suggestion:
Bullish Scenario:
- Entry: Buy above ₹24,950
- Target 1: ₹25,100
- Target 2: ₹25,327
- Stop Loss: ₹24,700
A breakout above ₹24,950 with good volumes can push the Nifty 50 toward the ₹25,327 zone.
Bearish Scenario:
- Entry: Sell below ₹24,557
- Target 1: ₹24,250
- Target 2: ₹23,900
- Stop Loss: ₹24,800
A breakdown below ₹24,557 may invite profit booking and drag the index lower toward 23,900.
Additional Technical Observations:
- Candlestick Pattern: A few indecisive candles after a strong rally indicate potential consolidation.
- Trend: The short-term uptrend is intact, but momentum is slowing. Watch for breakout confirmation.
- Volume: Needs to pick up for sustained moves beyond current levels.
Conclusion:
In conclusion, the Nifty 50 index trades near a crucial resistance zone around ₹25,000, with technical indicators like RSI and MACD signalling a possible consolidation phase before the next directional move. Traders should closely monitor the breakout levels mentioned above and align their strategies with clear price action confirmation. Stay tuned to viecapital.blogspot.com for daily Nifty 50 Elliott Wave Analysis, option strategies, and live market updates.
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