Backed by strong FII inflows and a solid technical breakout, the Nifty’s move above 25,000 opens up trading opportunities toward 25,300 and 25,500 in the short term, according to analysts.

After months of hesitation, the Nifty 50 has finally cleared the psychological and technical barrier of 25,000.

This breakout above the long-standing resistance of 24,800 signals a potential trend shift, bolstered by seven months of consolidation and higher-than-average trading volumes. 

According to SEBI-registered analyst Mayank Singh Chandel, this upward move is not just technical — it’s structural, indicating possible institutional participation.

The Relative Strength Index (RSI) at 66.21 reflects growing momentum, yet still offers room before the market turns overheated.

The significance of reclaiming the 25,000 mark cannot be overstated. Traders have watched it closely for months, and its breach clears the path to immediate resistance levels at 25,300, with the next hurdle at 25,800. 

The former resistance at 24,800 has turned into strong support. A breach below 23,800 would invalidate the current bullish trend.

Chandel notes that this breakout opens the gate for further upside, but advises traders to remain tactical. 

He advises positional traders to trail their stop-loss below the new support at 24,800 while aiming for 25,300–25,500. 

Short-term traders may look to buy on intraday dips near 24,880–24,920, using tight stop-losses. However, if the Nifty slips back below 24,800, it could signal a failed breakout and warrant caution.

Bharat Sharma adds that the Nifty is now only 4%–5% away from its all-time high and is likely to face resistance at 25,200–25,400. 

But with current momentum and the expiry behind us, he expects subdued price action in the immediate session, possibly a minor correction. 

As long as the index holds above 25,000, Sharma sees no reason to short the market and believes the breakout zone at 24,800–24,820 will act as a safety net if tested again.

On the upside, a breach above 25,100 could allow for quick scalping opportunities toward 25,200 and beyond. Sustained trading above 25,200 would open the path toward the 25,400 level in the coming week, although significant directional moves are less likely in the immediate session.

The sudden surge in foreign institutional investor (FII) activity is giving this breakout added credibility. As Varunkumar Patel points out, FIIs pumped over ₹5,000 crore into cash equities in a single day while simultaneously reducing short positions in index futures and options. 

This sharp shift suggests a change in sentiment and brings additional tailwinds to the index. 

Patel highlighted that a strong close above 24,800 would confirm a “buy-on-dip” market regime, where pullbacks are seen as entry opportunities rather than warning signs. 

He emphasized that Friday’s close will be pivotal in setting the tone for the market’s next phase, as sustained FII inflows and a strong technical close could reinforce the bullish narrative and attract further participation.

For now, traders may want to stay tactical — but with the technical picture improving, the bulls are back in control, at least for the near term.

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