Nifty Poised For Rally Toward 25,200–25,400 If This Level Holds, Say SEBI RAs

Both analysts agree that as long as Nifty holds above 24,750, bulls remain in control — but traders should stay nimble and watch for reversal cues.

Following a powerful bullish candle and a breakout above key resistance zones, the Nifty 50 is at a crucial juncture, according to SEBI-registered analysts Bharat Sharma and Dipak Takodara. 

The index closed above the strategic 24,800 level — previously the neckline of a head & shoulders pattern — signaling strong momentum and a potential move toward the psychologically significant 25,000 mark.

Sharma said the Nifty should sustain above the 25,000 mark and identified the next resistance levels at 25,200 and 25,400, corresponding to previous peaks from the head & shoulders pattern. 

A sustained breakout above these levels would open the path for the Nifty to challenge new all-time highs, with probabilities favoring a move toward 27,000 over the next two to three months, provided bullish momentum persists and no significant negative news emerges.

Conversely, if the index fails to hold above 24,800 or if adverse developments impact sentiment, the 24,000 level is expected to act as strong support. Any pronounced weakness would likely only materialize if the Nifty breaks below 24,000–23,800, a scenario considered less probable unless triggered by external shocks.

For intraday action, Sharma spotted immediate resistance at 24,940. A move above this could see the index test 25,000, 25,050, and potentially 25,200. 

On the downside, immediate support lies at 24,860, with subsequent support at 24,750, 24,660, and 24,550. 

He also pointed out that option premiums remain elevated, indicating the potential for significant intraday swings, especially with the Sensex expiry known for triggering large directional moves. Only a rapid decline in premiums at the open would increase the odds of a sideways session.

Overall, Sharma’s outlook remains bullish as long as Nifty sustains above key support levels, with the potential for further gains if resistance zones are conquered. However, he cautioned that traders should remain alert to any reversal signals or negative catalysts that could prompt a retest of lower supports

Complementing this view, Takodara’s outlook on the Nifty for Tuesday centers on a decisive shift in momentum following the formation of a “Bullish Marubozu” candle.

That pattern, characterized by a long body with no upper or lower shadows, signals strong buying pressure from the open to the close, indicating that bulls were firmly in control throughout the session.

The technical setup is further reinforced by Nifty trading above its 9-SMA, 20-SMA, and 50-SMA, a classic alignment that often marks the beginning of a fresh uptrend and suggests continued strength in the near term-provided external risks, such as geopolitical tensions, remain contained.

For the upcoming session, he identified the following key levels:

Resistance Zones

• 25,200–25,300: Immediate resistance, likely to be tested if bullish momentum persists.
• 25,650–25,750: Next resistance band if Nifty closes above 25,300.
• 26,200–26,300: Higher resistance if Nifty sustains above 25,750.

Support Zones:

• 24,750–24,800: Immediate support, critical for maintaining the current uptrend.
• 24,400–24,350: Support if Nifty closes below 24,750, providing a buffer against deeper corrections.
• 24,100–24,000: Deeper support if the index slips below 24,350.

Breakout/Breakdown Scenarios:

• A sustained move above 24,750 could trigger an advance toward 25,200–25,300.
• A fall below 24,750 may lead to a slide toward the 24,400–24,350 support zone.

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