Trading Plan: Can Nifty 50, Bank Nifty extend their downtrend for the fourth straight session?

Nifty Trading Plan for December 11

The Nifty 50 erased more than 50 percent of its gains from the record high by breaking below 25,800 and dropped closer to the 50-day EMA (25,700). Considering the bearish undertone, if the index breaks 25,700, a fall toward 25,500–25,400 can be seen, but holding above it can drive the index toward 25,800–25,950 in the immediate term, followed by the 26,000 zone. Meanwhile, as long as the Bank Nifty trades below 59,800, consolidation may continue, with 58,600 as support, as below it 58,300 and 58,000 levels can’t be ruled out, experts said.

On December 10, the Nifty 50 declined 82 points (0.3 percent) to 25,758, while the Bank Nifty fell 262 points (0.44 percent) to 58,960. The market breadth turned weak, with 1,591 shares witnessing selling pressure against 1,230 advancing shares on the NSE.

Nifty Outlook and Strategy

Nilesh Jain, Head- Equity Technical & Derivative Research at Centrum Broking

The markets remained under pressure for the third straight session, with Nifty closing below the 25,800 mark. The index has also broken down from a rising wedge pattern, establishing strong resistance near 26,000, which coincides with the 21-DMA. A MACD sell signal along with a bearish RSI divergence further underscores the cautious sentiment and signals weakening momentum.

On the downside, the next important support is at the 50-DMA around 25,690. Overall, the market structure is still weak, and caution is warranted as long as Nifty fails to reclaim the 26,000 level.

Broader markets also felt the pressure, with significant weakness in the Nifty Smallcap index, which slipped below its 200-DMA, indicating the potential for continued near-term downside.

Given this setup, any pullback is likely to face selling pressure.

(Spot levels)

Key Resistance: 25,860, 26,000

Key Support: 25,690, 25,550

Strategy: Nifty Futures can be considered for short positions in the 25,900–25,950 range, with a stop-loss at 26,050 and a downside target of 25,650.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

On Wednesday, the selling pressure finally spilled over into the large-cap universe as well, with both Banking and IT stocks facing notable profit-booking. This broad-based decline pulled the index into a corrective phase.

The index is oscillating around its 50-day EMA, a zone that often acts as a crucial turning point during trend transitions. The flattening slope of both the 20-day and 50-day EMAs suggests the market is slipping into sideways consolidation with a mild negative bias. Momentum indicators echo this view, but the RSI is revealing something much more telling.

During the recent pullback, the daily RSI failed to sustain above the 60 mark—an important threshold that defines bullish strength. The sharp reversal from that level and the slide toward 44 confirm a shift from a bullish to a sideways RSI range. This change in momentum often precedes meaningful price action, and the next levels will decide how deep this shift can go.

Going ahead, the 20-day EMA zone of 25,930–25,960 will act as a crucial resistance for the index. As long as the index remains below 25,960, the tone is likely to stay cautious to negative. On the downside, immediate support is placed around 25,630–25,600. A sustained breakdown below 25,600 could pave the way for a deeper slide toward 25,450 in the short term. And if that level cracks, the market narrative may shift faster than most expect.

Key Resistance: 25,930, 25,960

Key Support: 25,600, 25,450

Strategy: Sell Nifty Futures at around 25,850–25,900, with a stop-loss of 26,030, targeting 25,600.

Rupak De, Senior Technical Analyst at LKP Securities

Again, bears remained at the helm as the Nifty revisited the previous day's low, reinforcing a bearish bias. The index once again found support near the 50 EMA. The RSI on the daily timeframe has slipped out of its recent consolidation. Moreover, the index has broken below the 50 percent retracement of the prior upswing from 25,318 to 26,325, indicating further weakness.

In the short term, the index is likely to stay under pressure with immediate support at 25,700. A decisive breakdown below this level could open a correction toward 25,610 and 25,530. On the upside, resistance is placed at 25,870 and 25,960.

Key Resistance: 25,870, 25,960

Key Support: 25,610, 25,530

Strategy: Buy Nifty December 16 expiry at Rs 56.50, with a stop-loss of Rs 28, targeting Rs 100.

Bank Nifty - Outlook and Positioning

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

On Wednesday, the banking benchmark index Bank Nifty slipped below its 20-day EMA for the first time since October 2025, signalling a shift in momentum. For the third consecutive trading session, the daily RSI continues to trade comfortably below its 9-day average, and both are trending downward. This technical setup clearly suggests that the short-term trend has moved from bullish to sideways, reflecting caution among market participants.

Looking at key levels, the zone of 58,600–58,500 will act as crucial support for the index. A sustained move below 58,500 could accelerate the downside, leading to a further correction toward 58,000, and if weakness persists, even 57,600 in the near term.

On the upside, the zone of 59,300–59,400 remains an important hurdle. A decisive breakout above this resistance could revive bullish sentiment, but until then, the index is likely to remain range-bound.

Key Resistance: 59,300, 59,400

Key Support: 58,600, 58,500, 58,000

Strategy: Sell Bank Nifty Futures at around 59,200–59,300, with a stop-loss of 59,600, targeting 58,600.

Rupak De, Senior Technical Analyst at LKP Securities

The Bank Nifty has formed two consecutive bearish reversal patterns: first, a bearish harami, followed by a dark cloud cover. The daily RSI is also in a bearish crossover, reinforcing the weak sentiment. The index has closed below the 21 EMA for the first time since last September, further strengthening the bearish bias. In the short term, weakness is expected to persist.

On the downside, the index may drift toward 58,500. On the upside, resistance is placed at 59,600; as long as it trades below this level, the index is likely to remain a sell-on-rise candidate.

Key Resistance: 59,500, 59,600

Key Support: 58,800, 58,500

Strategy: Buy Bank Nifty December expiry contract at Rs 320, with a stop-loss of Rs 260, targeting Rs 410.

Nilesh Jain, Head- Equity Technical & Derivative Research at Centrum Broking

Bank Nifty also came under selling pressure, breaking below its immediate support at the 21-DMA near 59,150. Nonetheless, it has displayed some relative outperformance versus the Nifty in recent sessions. The index is now positioned near a key support at 58,700, and a decisive break below this level could extend the slide toward 58,000, which coincides with the 50-DMA. On the flip side, a move back above 59,800 may trigger short covering and push the index higher toward the 60,200 zone.

(Spot levels)

Key Resistance: 59,150, 59,800

Key Support: 58,650, 58,400