Nifty Slips 96 Points on Profit Booking After Hitting 26,100; Short-Term Selling Pressure Emerges, Says HDFC Securities’ Nagaraj Shetti

Mumbai, 24 October 2025: After a strong rally, Nifty 50 pulled back on Friday as investors booked profits near 26,100. The market opened positively but slipped into weakness, and mid-session recovery attempts failed. The index closed near the day’s lows, down 96 points.

Commenting on the market movement, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities Limited, has provided his analysis, highlighting that the recent selling pressure is a short-term correction following a strong rally. He noted a long negative daily candle with a minor lower shadow, indicating temporary weakness while the broader bullish trend holds.

Nifty Slips 96 Points on Profit Booking After Hitting 26,100

According to Mr Shetti, “after facing selling pressure around the swing high of 26,100 levels on Thursday, Nifty slipped into profit booking mode on Friday and closed the day lower by 96 points. Nifty opened on a positive note and slipped into weakness soon after the opening. There was an attempt of recovery in the mid to later part of the session and Nifty closed near the lows”.

Mr Shetti further stated, a long negative candle was formed on the daily chart with a minor lower shadow. Technically, this market action indicates a downward correction in the market after a stellar upmove recently.

Nifty Maintains Bullish Higher Tops Pattern Despite Short-Term Weakness

“The bullish pattern like higher tops and bottoms continued in Nifty as per daily timeframe chart and present weakness could be in line with the new higher bottom of the pattern”, However, the higher bottom reversal pattern needs to be confirmed”, according to Mr. Shetti. He also pointed out that Nifty on the weekly chart formed a small negative candle with long upper shadow, which signals consolidation movement at the highs.

He further mentioned, “The overall near-term trend of Nifty remains positive, but the market is facing selling pressure on a short-term basis. Further weakness from here could bring crucial support around 25,600-25,500 levels, which could be a buy on dips opportunity for the next week. Immediate resistance is placed at 25,950”.

Market Signals Suggest Consolidation and Controlled Profit-Taking Amid Uptrend

The recent movements in Nifty reflect normal market behaviour after a strong rally. Short-term profit booking shows traders are realising gains, while the long negative candle suggests temporary hesitation rather than a trend reversal. The continuation of higher tops and bottoms indicates that underlying market strength remains intact. Weekly chart patterns with long upper shadows imply cautious trading near highs, signalling that the market is consolidating and waiting for further confirmation before resuming upward momentum.

The bullish pattern like higher tops and bottoms continued in Nifty as per daily timeframe chart and present weakness could be in line with the new higher bottom of the pattern. However, the higher bottom reversal pattern needs to be confirmed. Nifty on the weekly chart formed a small negative candle with long upper shadow, which signals consolidation movement at the highs.

The overall near-term trend of Nifty remains positive but the market is facing selling pressure as per short-term basis. Further weakness from here could bring crucial support around 25600-25500 levels, which could be a buy on dips opportunity for the next week. Immediate resistance is placed at 25950.