Nifty 50 Technical Analysis and Prediction for 04/12/2025

Nifty faces strong support at 25,850 and resistance at 26,000 ahead of 4th December. Crude’s downtrend is positive, S&P 500 cues are strong, but FII selling and weak broader market sentiment continue. IT and private banks lead; PSU banks, healthcare, and auto lag. Very short-term trend is down but may reverse soon.

Nifty faces strong support at 25,850 and resistance at 26,000 ahead of 4th December. Crude’s downtrend is positive, S&P 500 cues are strong, but FII selling and weak broader market sentiment continue. IT and private banks lead; PSU banks, healthcare, and auto lag. Very short-term trend is down but may reverse soon.

Introduction

The Nifty 50 is set for another active trading session on 4th December 2025, with market sentiment driven by global cues, sector rotations, and evolving technical patterns. After recent volatility and sharp intraday swings, traders are closely watching key resistance zones, support levels, and trend indicators to gauge the next move. This outlook breaks down the current structure of the index, highlights important technical signals, and provides a clear view of what to expect in tomorrow’s session. Whether you are a day trader or a positional trader, these insights will help you navigate the market with better clarity and confidence.

Topics of Discussion

Quick Market Overview: Nifty 50 closed at 25986.00 change – 46.2 points (-0.18%). Session bias: negative. FIIs/DIIs: [FII net selling 2852.78 cr, DII net buying 4128.52 cr].

1. Today’s Market Overview (Very Short)

Nifty opened at 26,004.90, made an intraday high of 26,066.45 and low of 25,891.00. The index showed volatility as it reacted to Rupee reaching all time low vs US dollar. Price action was dominated by positive heavyweight movement in Private Banks and IT sector where as PSU Bank, Healthcare, Capital Market and Auto sector showed a negative momentum.

2. Intraday Price Action (Chart Behaviour)

Structure: Lower-highs & lower-lows in 30 mins chart
Hourly behaviour: Lower breakout level lies at around 25,850.
Daily candle type: Bullish Hammer
Volatility note: High

3. Support & Resistance Levels

Type	Level	Notes
Immediate Support	25,850	Short-term demand zone
Secondary Support	25,700	Daily swing support
Major Support	25,450	Positional / 1-week structural support
Immediate Resistance	26,000	Short-term supply zone
Major Resistance	26,200	Key choke point for momentum

4. Indicator-Based Read

Moving Averages — EMA20: 25,968, MA50: 25,680, MA200: 24,880.
Price is above all the three EMA indicating short, medium and long term trends are bullish.
RSI —41.91 – RSI is in neutral zone indicates a range bound movement.
MACD — 136.66 & MACD Signal –155.12 : Indicates , bearish market.
Bollinger Bands — [ Between 25,500 and 26382] is in squeezing mode suggests low volatility ahead.

5. Chart Pattern Observation

Pattern observed: Ascending channel with Higher Highs and Higher lows

Interpretation: Very short term trend is bearish but the trend reversal is in near future.

6. Volume & Participation

Volume trend: increasing in December future Chart. Participation was led by FIIs and DIIs. Higher volume confirms price movement: Price is moving down, but suddenly short sellers may cover up the position and upward movement may restart – possibility of very short term trend reversal.

7. Global Market Influence

S&P 500 (US Market) trend is up indicates positive impact on Nifty
USD/INR– Value – 90.229 ( all time high) indicates negative impact on Nifty 50
WTI Crude oil : Value 59.22$/barrel – In last 6 months it’s value decreased from 75 to 59.22 USD. Highly positive impact on Nifty 50.
Overall – Positive impact on Nifty 50

8. Nifty Prediction for Tomorrow — Scenarios

Bullish Scenario

Action: Long bias above 26000 with targets: 26,677 by the end of December 2025 Invalidation: Momentum weakens if price drops below 25,850

Bearish Scenario

Trigger: Heavy FII selling
Action: Short bias below 25,450 with targets: 24,500
Invalidation: Downside fails if price recovers above 26,000.

Most Likely Scenario

Based on current structure and indicators, the most likely outcome is: range-bound (25,850 to 26,325) with upside bias. Traders should expect uptrend to continue and trade accordingly with disciplined stops.

9. Trade Checklist (For Tomorrow)

Pre-market gap: watch SGX & US futures
Key levels to watch: [25850], [26,000]
Indicator confirmation: [RSI & MACD agreement]
Risk management: Use stop-loss below [25,850] for longs and above [26,000] for shorts
Prefer trades in direction of trend (upward) unless clear reversal pattern appears.

10. Final Conclusion

Nifty shows very short term weakness at present. Immediate focus will be on SGX, global cues, FII flows and whether the index holds above 25,850. For now, bias is bearish and the preferred approach is buy-on-dips with stoploss or wait-for-breakout above 26,050 with targets and invalidation levels noted above.