Technical View: Nifty likely to hit 26,250 as long as 25,900 holds amid thin year-end volumes, say experts

Stock market today: Sensex, Nifty see profit booking for 3rd straight day.

The domestic equity benchmarks settled lower on Friday as thin year-end trading volumes and caution ahead of the earnings season led to broad-based profit booking.

The Sensex fell for the third straight session, dropping 367.25 points or 0.43 percent to close at 85,041.45. During the day, it declined as much as 470.88 points or 0.55 percent to 84,937.82.

The broader Nifty slipped 99.80 points or 0.38 percent to settle at 26,042.30, marking its second consecutive day of losses.

Market participants cited foreign fund outflows and the absence of major domestic triggers for the cautious sentiment.

Market experts said the Nifty could move towards 26,250 as long as the 25,900 level holds, despite thin year-end trading volumes.

Rajesh Bhosale, Equity Technical Analyst at Angel One, said the index continued to maintain a higher-top, higher-bottom structure on the intraday charts.

"In such an environment, traders should avoid reacting to short-term noise and follow a buy-on-dips approach while booking profits near higher levels. On the downside, immediate support is seen at 25,900, while 25,700 remains a key level for the near-term trend. On the upside, the 26,250–26,350 zone is a major hurdle, beyond which the Nifty could gain fresh momentum," he said.

Rupak De, Senior Technical Analyst at LKP Securities, said the index remained weak after slipping below the 21-period exponential moving average on the hourly chart.

"The RSI is in a bearish crossover and trending lower, indicating weakening momentum. The Nifty found support near the 26,000 level during the session. The trend may improve and retrace towards 26,200 and higher if 26,000 holds decisively, but a sustained move below this level could lead to further weakness," he said.

During the session, investors booked profits in information technology, real estate and energy stocks, while gains in select banking and metal shares helped limit the downside.

In the holiday-shortened week, the Sensex gained 112.09 points or 0.13 percent, while the Nifty rose 75.9 points or 0.29 percent.

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