Nifty Under 10-EMA Cools Bullish Conviction: Brokerage

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Nifty has support at 25700 if weakness extends further. The level is marked by the rising trendline joining September and November higher bottoms becomes important.

By S JHA

Mumbai, November 25, 2025 — On an eventful day of trading in the stock market, indices cracked in the last hour to dive deeper. The sharp correction came on the monthly expiry day. Nifty closed under 10-EMA while the market breadth stayed bearish.

In three sessions, Nifty has lost over 300 points, showing sharp corrections in the stock market. Brokerages claimed that rises in the indices are sold as they face resistance at higher levels.

“Nifty started flat and stayed confined within a narrow 100-point range for most of the session on Tuesday. However, similar to the previous day, weakness emerged in the penultimate hour, dragging the index to a close just below 25900 with a cut of 0.29%,” said Angel One in a note to clients after the market hours.

It, however, noted that the primary trend still remains firmly up. “The index is currently in a corrective phase and has reached a crucial juncture. On the daily chart, Nifty has approached the confluence of its 20-DEMA and last week’s low around 25850, an area that typically acts as a bullish reversal zone in strong uptrends,” added the Delhi-based brokerage firm.

Nifty has support at 25700 if weakness extends further. The level is marked by the rising trendline joining September and November higher bottoms becomes important.

“On the upside, Nifty has been facing intraday hurdles at every 100-point mark: around 26000 today, 26100 yesterday, and 26200 the day before, with the all-time high placed near 26300,” added Angel One.

The brokerage firm further stated that Nifty extended its bearish stretch with a 75-pt decline on Tuesday, closing below 25,900 and slipping under the 10-EMA.

“Futures dropped 115 pts vs a 75-pt spot fall, narrowing the next-expiry premium to 170 pts -reflecting cooling bullish conviction,” it added.

Realty and PSU indices offered support with 1%+ gains, while IT was the top laggard with a 0.5% dip. “The index has now corrected over 300 pts in three sessions from the recent peak. Market breadth remains weak, with fewer than half of Nifty stocks trading above the 5, 10 and 20 EMAs,” added the brokerage firm.

The PSU Bank stocks resumed their recent outperformance today, with the sectoral index rising close to 1.5%, it added. “The index appears to have retested a recent consolidation breakout, suggesting higher prices in the upcoming sessions,” noted Angel One.