Nifty outlook: Buy the dips or sell the rallies? Here's what charts say

The NSE Nifty 50 index has declined 1.5 per cent from its recent high; technical charts suggest the index is likely to remain in buy on dip mode as long as it manages to close above 24,975 levels.

The National Stock Exchange (NSE) benchmark, the Nifty 50 index has shed 375 points or 1.5 per cent in the last four trading sessions from a high of 25,448 touched on September 18, 2025.  Analysts attribute the recent dip in the market to profit-taking, as Nifty had surged 4.3 per cent in the preceding 14 trading sessions amid the GST 2.0 optimism driven rally. 

Is the current down-move an interim correction or will the fall continue?

  Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities believes that with back-to-back lower closes and resistance zones gradually shifting downward for the Nifty, the sentiment leans towards the cautious side.  Still, momentum indicators remain neutral, with the Relative Strength Index (RSI) holding above 50 - suggesting bears are yet to fully dominate, Dhupesh said in a note.  Prashanth Tapse, Senior VP (Research) at Mehta Equities says that that, technically the Nifty must decisively close above 25,466 to confirm strength; until then, volatility will remain the theme, with caution continuing to be the buzzword at Dalal Street. 

Key levels to watch out on Nifty 50 index

Nifty 50

Current Levels: 25,075  Likely Target: 24,350 / 25,900  Upside Potential: 3.3%  Downside Risk: 2.9%  Support: 24,975; 24,925; 24,880  Resistance: 25,260; 25,350; 25,450; 25,575  The NSE Nifty 50 index is seen quoting above the short-term moving averages on the daily scale, with shorter-term averages quoting above the longer-term 200-Day Moving Average (200-DMA), thus implying a favourable bias as per the price-to-moving averages action. 

 

 

  The daily chart further shows that the Nifty has been holding above its trend line support, which indicates that the near-term bias is likely to remain positive as long as the index holds above 24,975 levels on a closing basis.  That apart, the 20-, 50- and 100-DMAs are seen converging in a narrow band of 24,880 - 24,925 levels, thus highlighting presence of multiple support levels, just below the key trend line support. Thus, the overall bias for the Nifty is likely to a 'buy on dip' as long as these support levels are respected. Break and sustained trade below the support zone, can open the doors for a likely dip towards 24,350 levels.  In case of a pullback, the Nifty is expected to face resistance around 25,260, 25,350 and the recent high around 25,450. The NSE benchmark index will need to clear the key hurdle at 25,575 levels for a likely rally towards 25,900 levels, suggests the medium-term chart.