The analyst said traders should wait for a bounce toward resistance before shorting, with the downtrend intact unless the index closes above 25,350.
The Nifty 50 index is under pressure, with technical signals pointing to further downside if key support levels are breached.
SEBI-registered analyst Varun Bhargav of ProfitXResearch said the index has been in a short-term downtrend since peaking near 25,750–25,800 in June 2025, forming lower highs and lower lows that indicate sustained selling pressure.
Nifty is trading just above the 24,500 support zone, but momentum remains negative.
Bhargav noted that one unfilled gap lies above current levels, though weakness in the market makes a near-term fill unlikely. Any rise toward this gap should be treated as a selling opportunity, he added.
A second gap was filled in April, with the subsequent rally fully exhausted before reversing lower.
The first hurdle for the Nifty is around 24,950–25,000, a zone that could draw in fresh selling if the index climbs back to it. Above that, stronger barriers sit at 25,300–25,350, with a major supply zone waiting at 25,500–25,600.
On the downside, the next support is in the 24,250–24,300 range.
If that gives way, the index could slip further toward 23,800–23,850, and even 23,200–23,300 if the selling gathers pace.
As per Bhargav, traders should avoid chasing the prices lower at the current levels and instead, look for a bounce back towards the resistance zones, before entering fresh shorts.
Until then, traders can adopt a sell-on-rise strategy, but one can change stance only if Nifty closes well above 25,350, invalidating the ongoing downtrend.
The action plan calls to start short near 24,950–25,000 or 25,300–25,350 levels with a stop loss just above 25,350 and targets at 24,300, 23,800, and 23,300 levels.
On Stocktwits, retail sentiment for Nifty50 was ‘bullish’ amid ‘high’ message volume.
Nifty50 has risen 3.6% so far in 2025.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
