Nifty Tumbles in Long Upper Wick and RSI Play as OI Jumps

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Nifty enters an indecisive phase as profit booking intensifies, but RSI strength keeps the broader market trend cautiously bullish

By S JHA

New Delhi, December 26, 2025 — The markets were sold at higher levels on Friday, as indices dived deeper with heavy cuts. A long upper wick on the chart for the Nifty brought long faces for the traders. Yet they were assured of the RSI strength, extending strength at the lower levels to the 50-share index.

Chartists claimed that Nifty has entered an indecisive phase. A breakout from the congestion zone will require leadership, as well as firm cues. Both were missing on Friday, as traders booked profits.

“Market breadth weakened, with declines (1,867) outpacing advances (1,285), though new 52-week highs and upper circuits signalled selective strength,” said Angel One in a market note shared with clients on Friday evening.

Nifty slipped 100 points to close at 26,042.3, with a short build-up evident as OI jumped over 10%, added the Delhi-based brokerage.

“Sectoral pressure was visible across IT, Auto and Media, dragging overall sentiment. Metals outperformed, emerging as the only index to post over 0.5% gains,” added the brokerage firm.

On the weekly chart, it said, “a long upper wick reflects supply at higher levels, but RSI at 61 keeps the broader trend constructive despite near-term pressure.”

“On the weekly chart, Nifty formed a neutral Doji candlestick, highlighting indecision at higher levels. As we step into a crucial week that marks both the close of the calendar year and the beginning of a new one, we expect consolidation to persist unless a decisive breakout emerges from the current range,” added Angel One.

It stressed that the “broader undertone remains tilted towards the bullish side, as prices continue to trade above key moving averages. Additionally, a fresh bullish crossover in the RSI Smoothened near the 50 mark lends support to the positive bias.” “On the intraday hourly chart as well, prices continue to maintain a higher-top, higher-bottom structure. In such an environment, traders are advised to avoid getting swayed by short-term noise and instead adopt a buy-on-dips approach while booking profits near higher levels,” added the analyst at Angel One.

The brokerage firm also stated that “immediate support is placed around 25900, while 25700 remains a sacrosanct level for the near-term trend. On the upside, the 26250–26350 zone stands out as a key hurdle, beyond which Nifty could fresh leg of momentum in the uncharted territory.”

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