Nifty 50 Past Developments
Nifty began its decline from its all-time high of 26,277, which was recorded on 27th September 2024, and continued falling until 7th April 2025, when it touched a low of 22,743 — a total loss of 4,334 points or 16.49%.
From 8th April onwards, the index staged a remarkable recovery, gaining 4,134 points, which amounts to a 99% recovery and an overall gain of nearly 19%.
However, during this ongoing bull phase that began on 8th April, an interesting development has occurred — most sectors underperformed compared to the Nifty 50. Even the Nifty Smallcap 250 lagged behind. This clearly indicates that the present bull run is sector-specific rather than broad-based.
Table of Contents
Nifty 50 Technical Analysis
Support and Resistance Levels
The Nifty 50 has successfully surpassed all its key resistance levels except the 26,277 mark, which remains its all-time high. At this stage, psychological resistances are likely to emerge around 26,500, 27,000, and 27,500.
On the downside, the major support levels to watch are 25,000, 25,450, 25,676, and 26,000.
Trendline Analysis
Drawing an upward trendline from the low formed on 7th April reveals a strong support zone around 25,350. For the current intermediate trend to reverse, Nifty would have to drop by at least 1,000 points, which seems unlikely for now.
Additionally, Nifty has broken out of a triangle pattern that formed between July and September, confirming the strength of the uptrend. This suggests that the index is likely to maintain its upward momentum in the coming months.
That said, short pullback rallies within this ongoing intermediate uptrend are quite possible — they’re natural parts of any sustained market movement.
Moving Averages
Currently, the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA) all lie below the Nifty 50’s current price, reflecting strong bullish momentum.
Each day, the slopes of the 20-day and 50-day EMAs are becoming steeper, indicating that the rally is gradually gaining strength. However, the gap between the price and the moving averages is widening, suggesting that a short-term correction may be needed to make the rally healthier and more sustainable.
Current Values:
- Nifty 50: 26,060
- 20-day EMA: 25,360
- 50-day EMA: 25,125
- 200-day EMA: 24,437
MACD Indicator
The MACD line is currently positioned above its signal line, and six ascending histogram bars are visible above the zero line.
- MACD Value: 241.58
- Signal Line Value: 144.58
This configuration indicates that the intermediate-term uptrend remains intact and that bullish momentum continues to dominate.
RSI and Stochastics
The Relative Strength Index (RSI) stands at 75, and Stochastics is at 95 — both firmly in the overbought zone.
However, this doesn’t necessarily mean that traders should exit their buy positions. A short-term correction might occur, but investors are advised to maintain a trailing stop-loss on their existing positions to protect profits while staying in the trend.
Sectors to Watch
Strong Performers
The leading sectors driving this bull run are:
- Nifty Bank
- Nifty Financial Services
- Nifty Auto
- Nifty Metal
Sectors in a Trading Range
The following sectors are moving sideways within a defined range, showing no clear breakout yet:
- Nifty FMCG
- Nifty Pharma
- Nifty Energy
- Nifty PSU Bank
- Nifty CPSE
- Nifty Realty
Underperforming Sectors
Sectors that have failed to match the Nifty 50’s performance include:
- Nifty IT
- Nifty Media
Performance by Market Capitalization
- Large Cap: Strong performers
- Mid Cap: Consistent performers
- Small & Micro Cap: Underperformers
Conclusion
The market currently appears stable and positive, but a near-term correction cannot be ruled out.
Investors should continue participating in the rally but maintain a strict stop-loss strategy before entering any new positions.
Frequently Asked Questions (FAQ)
1. What is the current trend of Nifty?
Nifty is currently in an intermediate uptrend after recovering nearly 99% from its April 2025 low. Technical indicators like MACD and moving averages confirm that bullish momentum remains strong.
2. What are the major resistance levels for Nifty?
The key resistance levels are 26,277 (all-time high), 26,500, 27,000, and 27,500 — which act as psychological resistance zones.
3. What are the important support levels for Nifty?
Nifty’s major support levels lie around 25,000, 25,450, 25,676, and 26,000, with a strong trendline support near 25,350.
4. Is Nifty likely to see a correction soon?
Yes, while the overall market remains positive, the widening gap between price and moving averages suggests a short-term correction is possible for a healthier rally.
5. Which sectors are leading this Nifty bull run?
Nifty Bank, Financial Services, Auto, and Metal sectors are the top performers, while sectors like FMCG, Pharma, and PSU Banks are still trading in a range.
6. Should investors buy Nifty at current levels?
Investors may consider entering with caution, using strict stop-loss orders and a trailing strategy. Since Nifty is in the overbought zone, it’s wise to wait for minor pullbacks before adding fresh positions.
Disclaimer
The information provided in this article is for educational and analytical purposes only. It should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance of Nifty or any sectoral index does not guarantee future returns. Readers are advised to consult their financial advisor before making any investment decisions based on the analysis presented here.