Nifty Stuck In Narrow Range: SEBI RAs Flag Key Levels Near 25,200 As Critical Breakout Zones

The Nifty index failed to sustain above its 20-day Exponential Moving Average (EMA) of 25,183 once again on Tuesday, reflecting persistent selling pressure at the 25,200 zone – near 31.8% Fibonacci retracement level.

SEBI-registered analyst Mayank Singh Chandel noted that the gap-down from July 11 continues to act as a resistance ceiling, restricting any meaningful upside. The index formed a bearish candle on the daily chart, indicating that bullish momentum is fading; short-term trend remains weak. 

Chandel identified resistance at 25,200,25,300, and 25,350. Support is seen at 25,000, followed by 24,800. Major support is seen at 24,500, and the Nifty index must hold this level for the broader uptrend to remain intact.

Ahead of the expiry session this week, the option data signals a range-bound setup between 25,000 and 25,200 in the near term, and any directional move is likely only on a breakout from this band. 

Chandel said that sustaining above the 20 EMA (25,183) is key to any bullish continuation, and that a failure to reclaim this level could keep the index rangebound or mildly bearish. While a break below 25,000 may invite fresh selling toward 24,900–24,800. He advised traders to stay cautious in intraday trades.

Analyst Dipak Takodara highlighted that the index is now stuck between two Fibonacci levels: 24,900 (near the 61.8% Fibonacci retracement level) and 25,200 (near the 31.8% Fibonacci retracement level), lacking a strong directional cue. However, Nifty held above critical support levels and the 50-day Moving Average (DMA).

He identified 24,900–24,923 as the immediate support. Below that, 24,724 and 24,473 are key Fibonacci and price-based levels. On the upside, 25,205 (38.2% retracement), 25,325 (20-DMA), and 25,381 (23.6%) are key resistance zones. 

Takodara concluded that the bulls must defend the 24,900 level to avoid a deeper correction. A break below this could raise selling pressure. On the other hand, a move above 25,205 is necessary to resume bullish momentum.  

Analyst Bharat Sharma of Stockace Financial Services noted that a symmetrical triangle pattern was observed on Tuesday, indicating consolidation and indecision. He identified immediate support at 25,060 (lower boundary of the triangle). If the Nifty breaches this level, it could then head towards 25,000; however, bearish momentum will gain ground only if it falls significantly below 25,000. The following supports are seen at 50 DEMA and in the 24,900–24,920 region.

On the upside, immediate resistance is pegged at 25,100. A sustained break above this level would take the index to the 200-day EMA at 25,140-25,150, followed by the next major resistance at 25,200.

And Vinay Taparia added that if the Nifty index closes above 25,160, we can assume that the bottom has been made for this down move. Until then, he sees the market rangebound between 24,880 and 25,160.

For updates and corrections, email newsroom[at]stocktwits[dot]com.