NIFTY 50 OVERVIEW

 

Based on the provided 1-minute chart of NIFTY 50 (as of May 20, 2025, 13:47 IST) and your comment that it's currently trading around 24,890, here's a technical breakdown and recommendation:

📉 Technical Analysis:

1. Trend Analysis: The chart shows a clear downward channel, indicating a short-term bearish trend.

Price is moving within a well-defined descending channel, and at the current moment (in the image), it is testing the upper boundary of the channel, suggesting a potential resistance.

2. Support & Resistance: Immediate Resistance (Channel Upper Line): ~24,800-24,820

Immediate Support (Channel Lower Line): ~24,700

Breakout Resistance: ~24,850–24,900

Major Support Zone: ~24,600

📊 Trading Strategy (Short-Term – Intraday/Swing): If it breaks out upward (above 24,820–24,850): Action: Go Long (Buy)

Target:

Short-Term: 24,950

Extended: 25,050

Stop Loss: 24,720 (below breakout base)

Potential Gain: ~160 points

Risk: ~130 points

Risk-Reward Ratio: ~1.2:1

If it gets rejected at the top and falls back into the channel: Action: Go Short (Sell)

Target:

Near-Term: 24,700

Extended: 24,600

Stop Loss: 24,850

Risk-Reward Ratio: ~1.5:1

📈 Investment View (Short-Term to Long-Term): Short-Term (Few Days to Weeks): Wait for a breakout confirmation above 24,900–25,000.

If breakout sustains:

Target: 25,200 – 25,500

Stop Loss: 24,700

Upside Potential: ~2.5% from breakout

Risk: ~1.2%

Long-Term (Few Months+): A breakout above 25,000 on strong volume may lead to:

Target 1: 25,800

Target 2: 26,500

Stop Loss: Close below 24,400

Upside Potential: ~6.5–10%

Risk: ~2%

📌 Conclusion & Recommendation: Term Action Entry Level Target Range Stop Loss Potential Intraday Buy on breakout above 24,850 24,850–24,870 24,950–25,050 24,720 ~0.6–0.8% Swing Buy above 24,900 24,900–25,000 25,200–25,500 24,700 ~2.5% Long-Term Accumulate on dips above 24,600 24,600+ 25,800–26,500 24,400 ~6–10%

⚠️ Important Notes: The NIFTY is an index, not a stock — you invest via ETFs, futures, or options.

Keep an eye on global cues, FII activity, and economic data which can heavily influence NIFTY.

Use a trailing stop loss once it begins moving in your favor.