Equity: Nifty Jams in 10, 50-EMA as Call Writers Mine Risk-off

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Support for Nifty is seen around the 25750-25700 zone, coinciding with 50 DEMA. A breakdown could disrupt outlook.

By S JHA

Mumbai, December 17, 2025 — Bears held hold over the Indian equity market on Wednesday. Bulls stayed nervous amid weakening global cues. On chart, Nifty got weaker as call writers aggressively pulled down levels on Wednesday.

Brokerages have sounded caution on the street. The market lacked momentum, as leadership was missing. The only solace for bulls was pullback in the last hour of trades. Nifty protected 25800, while trading lower through day’s sessions.

“Nifty ended 41 pts lower, maintaining a flat-to-negative tone as momentum cooled,” said Angel One in a note on market shared with clients. The brokerage stated that “fresh call writing at 25,850–25,900 highlights a clear near-term resistance zone.”

“The 50-share index is at a crucial juncture, trading between its 10-EMA and 50-EMA, with RSI slipping to 46, indicating weakening momentum,” added the Delhi-based brokerage firm. It also noted that “participation deteriorated further in the market, with over 65% of Nifty stocks below their 5 & 10 EMAs, reflecting broader short-term pressure.”

“Nifty50 index is currently situated between the 20-day and 50-day EMAs, with these averages converging, suggesting a potential shift in market direction in the forthcoming sessions,” added the brokerage.

It also stated that “the support is seen around the 25750-25700 zone, coinciding with 50 DEMA and lows from the previous week, which has facilitated a rebound. A breakdown below the same could disrupt the near-term outlook.”

“On the other hand, the 20 DEMA at 25950, followed by 26000 represents a sturdy hurdle and a sustained move beyond this could only provide a breather to market participants,” added Angel One.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)