Stock Market Trade Setup: Nifty Support at 25,000 Amid Consolidation
The Indian stock market indices, the Sensex and Nifty 50, faced significant pressure last week. Gains from the earlier US-India trade deal faded as the market turned its focus toward global concerns. A major sell-off in information technology (IT) stocks, triggered by fears of AI-driven disruption, weighed heavily on investor sentiment.
The Nifty IT index hit a 10-month low, officially entering bear market territory. By the end of the week, the BSE Sensex fell nearly 1.2% to close at 82,626.75, while the NSE Nifty 50 settled below the 25,500 mark.
Nifty 50 Technical Outlook
On the weekly chart, the Nifty 50 formed a bearish candle that stayed within the previous week’s price range. This indicates a period of consolidation with a focus on specific stocks rather than a broad market move.
Brokerages suggest that the short-term bias remains downward as long as the index stays below the 25,750 level.
- Support Levels: If weakness continues, the index could slide toward 25,200 and 25,000. The 25,000 level is considered a major floor, as it aligns with the 52-week Exponential Moving Average (EMA).
- Resistance Levels: A move above 25,750 is needed to pause the current decline. Last week’s high of 26,000 remains the key resistance hurdle.
Bank Nifty Analysis
The Bank Nifty index also showed a small bearish candle on the weekly chart, suggesting consolidation with a slight corrective bias.
- Trading Range: The index is expected to move between 59,500 and 60,800 in the coming days.
- Upside Potential: A breakout above 60,800 could push the index toward the 61,200–61,800 resistance zone.
- Support Base: Immediate support is seen at 59,500–59,200, where the 20-day and 50-day EMAs meet. Experts believe this “breather” could provide a buying opportunity, though volatility is expected to remain high due to global uncertainty.
Market Recap: A Tough Week for Investors
On Friday alone, the Sensex dropped over 1,000 points, while the Nifty fell 1.3%, wiping out recent gains. The sell-off was broad-based, with the Nifty Metal Index leading the decline at 3.3%.
The data shows a difficult start to 2026 for the tech sector:
- The Nifty IT index has slumped 13.7% so far this year.
- In February alone, the 10 major companies in the IT index lost approximately $50 billion in market value.
- Total investor wealth eroded by ₹7.02 lakh crore in just one trading session.
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