Nifty Trade Setup for November 16: Nifty 50 Declines 155 Points, 25,000 Mark Remains Crucial

The Nifty 50 witnessed profit booking on Friday, declining 155.05 points or 0.61 per cent to close at 25,144.30. The index opened at 25,209.85, touched an intraday high of 25,246.35 and slipped to a low of 25,054.40. The decline came after a sharp rally in recent sessions, with selling pressure emerging near the 25,250 zone. The index is now approaching an important support area around the 25,000 mark.

Market Breadth: Selling Pressure Dominates the Broader Market

Market breadth remained weak, with only 11 stocks advancing against 39 declining on the Nifty 50. The Nifty Auto, Realty and Commodities sectors were among the major laggards. The weak breadth indicates broad-based selling pressure and suggests that market participation has softened following the recent rally.

Nifty Technical Setup: Index Faces Resistance Around 25,250

On the daily chart, the Nifty 50 continues to trade above its key moving averages, with the 20-day EMA at 24,732.46, the 50-day EMA at 24,087.11 and the 100-day EMA at 23,673.06. This keeps the broader recovery structure positive. However, the index faced selling pressure near 25,250 and closed below the 25,145 resistance zone. The immediate support is placed around 25,054–24,973, making this zone crucial for the next session.

RSI and Bollinger Bands: Short-Term Momentum Shows Signs of Weakness

The daily RSI stands at 75.22, indicating overbought conditions following the sharp recovery from the October lows. On the daily chart, the upper Bollinger Band is placed near 25,786, while the index continues to trade within the wider band structure. On the hourly chart, the index has slipped below the middle Bollinger Band near 25,223.50 and is trading closer to the lower band around 25,054.66, indicating cooling short-term momentum. The 15-minute RSI at 49.11 reflects neutral intraday momentum.

Key Levels to Track for Nifty on November 16

The Nifty 50 has witnessed profit booking after its recent sharp rally, while weak market breadth and the hourly Bollinger Band setup indicate near-term caution. The 25,054–24,973 zone will be crucial for the index. Holding above this support range could lead to consolidation and a recovery towards 25,250 and 25,392. A sustained move above 25,250 would improve the short-term outlook, while a decisive break below 24,973 could extend the correction towards the 24,732 level.