Nifty Jumps with Long-wick Candle and OI Play
Bombay Stock Exchange
Momentum remains constructive, with RSI holding above 60 on both daily and weekly charts.
By S JHA
Mumbai, December 6, 2025 — Powered by rate cut by the Reserve Bank of India, Nifty came close to 26200 level on Friday. Amid sharp volatility, stock induces finally took cues from the monetary policy to go trending.
Nifty made at least three attempts to cross the 26200 hurdles but failed. On the dip, 26100 stayed as a support for the 50-share index.
With IT and financials giving energy, the indices closed with sharp gains. But overall equity markets continue to be in bearish phase as several small and mid caps face sharp corrections.
“Nifty ended Friday 152 points higher while the weekly close stayed flat, rebounding from 25,891 to finish near the 26,200 zone with a long-wick candle indicating buying at lower levels,” said Angel One in a note to clients.
The brokerage also stated that “Friday’s move was supported by over 1% short-covering in OI.” “Momentum remains constructive, with RSI holding above 60 on both daily and weekly charts. India VIX dropped 4%, marking its weakest close in 36 sessions and finishing 9 out of the last 10 sessions in the red, sliding from 13.85 to 10.32,” added the New Delhi-based brokerage.
It further argued that “Nifty continues to maintain its higher-top, higher-bottom structure, with dips consistently finding buying support around the 20-DEMA.” “The 26,000 zone remains an immediate support, while 25,850 is a key sacrosanct level. On the upside, 26,300 acts as near-term resistance, and a breakout above this level could further accelerate the positive momentum,” added Angel One.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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