Nifty 50 is under pressure in the short term, with a b resistance level at 26,000. Support is seen near 25,860. Momentum indicators are cautious, while FIIs are on the short side and DIIs are holding long positions.
Nifty Outlook: The 26,000 level has become a significant resistance for the Nifty market. The NSE Nifty 50 has declined approximately 230 points, or 0.9 percent, over the last four trading sessions. During this decline, the index is now trading near its 50-day moving average, which is positioned at the 25,923 level on the daily chart. This suggests that the market is proceeding cautiously in the short term, and the situation remains uncertain for any b upward movement.
Nifty’s Recent Recovery and Resistance
According to Om Mehra, Technical Analyst at Samco Securities, the Nifty failed to sustain its recent recovery. Monday’s daily candle once again indicated selling pressure. Om Mehra states that after encountering b resistance in the 26,100–26,000 zone, the index slipped lower again. This suggests a weakening of short-term bullish strength. However, the Nifty remains above the lower Bollinger Band, indicating that a significant decline is currently being averted.
Support Levels for Nifty
Technical analysts believe that the Nifty may find support around 25,860, which coincides with the 78.6% retracement level. On the upside, the 26,000–26,050 zone remains the first resistance zone, while the 26,150 level could prove to be a significant obstacle to any b recovery. Ponmudi R, CEO of Enrich Money, warned that if the Nifty fails to hold the 25,900 level, the index could fall to 25,800–25,700. A decisive break below this level could trigger a deep correction in the market.
Status of Momentum Indicators
According to Ponmudi R, momentum indicators are signaling caution. The RSI is around the 49 level and is showing a bearish crossover. The MACD is negative, but the histogram is shrinking, suggesting a slowdown in the downward momentum. As long as the Nifty remains above 25,950, there is a possibility of a slight recovery towards 26,050–26,100. The short-term outlook remains neutral to slightly negative.
Expectation of Short-Term Consolidation
According to Rishikesh Yedve, Assistant Vice President at Asit C. Mehta Investment Intermediates, as long as the Nifty remains above 25,800, the index will consolidate within the 25,800–26,325 range in the short term. This means that a major breakout or b rally is unlikely for now, and the market may trade cautiously.
Market Sentiment in F&O Data
According to Dhupesh Dhamija, Derivatives Research Analyst at Samco Securities, the F&O data reflects a cautious and restrained market sentiment. Call writers have added new positions at ATM and nearby strikes, increasing supply on the upside and halting the rally. Notably, a buildup of approximately 2.30 crore call contracts has been observed at the 26,000 strike, making it a b resistance.
Meanwhile, put writers have reduced their positions and rolled over to lower strikes. This indicates that the market is currently in a consolidation mood rather than a major breakout. The addition of around 1.13 crore put contracts at the 25,900 strike is providing b support to the Nifty in a decline. If the index manages to defend this support zone, a short-covering rally is also possible.
Positioning of FIIs, DIIs, and Retail Investors
Nifty F&O data also reveals that more than 86 percent of positions held by Foreign Institutional Investors (FIIs) are on the short side. Their long-short ratio is 0.16. This ratio reached 0.09 on December 18, 2025.
In contrast, the position of Domestic Institutional Investors (DIIs) and retail investors is different. The long-short ratio of DIIs is 2.13, while the ratio of retail investors is 2.48. This means that in both these segments, there are more than two long positions for every short position. This shows that domestic investors still have confidence in the market and may take advantage of short-term declines as buying opportunities.
