The current technical structure of Nifty reflects a important breakdown. After failing to confirm a breakout, the Index has slipped below the trendline that was drawn from the high formed in September 2024. It has also slipped below the short-term 20-week moving average and now hovers near the lower Bollinger Band. The lower Bollinger band also aligns with the 50-week MA placed at 24758.
The region of 25,000–25,150, which includes the 200-DMA on the daily chart and a key support, is being tested. If this zone is violated convincingly, it may trigger a deeper corrective move.Conversely, any bounce would remain vulnerable unless the index reclaims the 25,650 levels.
Given the steep correction and a mildly oversold setup on the daily chart, the coming week, shortened by the Republic Day holiday on Monday, may see a tentative start with a possible technical rebound. However, volatility is expected to stay elevated as Tuesday also marks the monthly F&O expiry. as the markets would open after a gap of one day, they would also adjust to the prevailing global trade setup.
