Short term - Technical Outlook

Nifty 50 witnessed a modest pullback in the previous session and closed near 25,732 after failing to sustain around recent highs. The index continues to hover near its 20-day EMA around 25,978 and 50-day EMA near 25,892, highlighting an ongoing consolidation phase rather than a clear directional trend. Momentum indicators remain mixed, with RSI stabilising in neutral territory, while MACD stays subdued, indicating the need for stronger confirmation for any sustained upside. Immediate support is placed in the 25,650–25,700 zone, aligned with recent swing lows and key EMA support. As long as this area holds, the index may attempt consolidation with a mild upward bias. On the upside, the 25,900–26,000 zone remains a critical hurdle, marked by prior supply and heavy Call OI. A decisive close above 26,000 would be required to extend recovery towards higher levels, while failure to reclaim this zone may continue to encourage a sell-on-rallies approach. A break below 25,650 could invite deeper corrective pressure towards 25,500-25,400.
 

Short term Research Report Call

Buy Above: 25800 | Targets: 25850, 25900, 25950 | Stop-loss: 25700
Sell Below: 25600 | Targets: 25550, 25500, 25450 | Stop-loss: 25700

Short term Chart

Long term - Technical Outlook

Nifty continues to trade in a structural uptrend, supported by its position above major moving averages. On the higher side, 26,300-26,350 is emerging as a crucial resistance zone; a decisive breakout above this level could trigger further upside, opening the path toward 26,500 and potentially new lifetime highs. On the downside, strong support is identified in the 26,600–25,500 band, which is likely to act as a demand zone on pullbacks. However, a sustained breach of this support region may invite profit-booking and corrective pressure, dragging the index lower toward the 25,300 mark or even below. Overall, the technical setup favors the bulls as long as Nifty maintains strength above its support levels, with every dip presenting a buying opportunity until proven otherwise.

Long term Research Report Call
Buy Above: 25950 | Targets: 26000, 26050, 26100 | Stop-loss: 26850
Sell Below: 25850 | Targets: 25800, 25750, 25700 | Stop-loss: 26000
 

Long term Chart

NIFTY 50

Nifty 50 is trading around the 25,700 zone, attempting a mild recovery after recent volatility. The index remains in a consolidation phase with a neutral to mildly bullish bias as long as it holds above the key 25,600–25,700 support zone, which coincides with the 100-day EMA and a recent demand area. On the upside, resistance is placed at 25,800–25,900, and only a decisive move above 26,000 would shift sentiment more positively toward the 26,200+ zone. Until then, overhead supply and option-led resistance may restrict sharp rallies.

Option data for the weekly expiry on January 20, 2026 shows call-writing dominance, with cumulative Call OI around 12 crore contracts versus Put OI near 10.24 crore, resulting in a PCR of approximately 0.85. Heavy call OI build-up at 25,700, 25,750, and 25,800 indicates strong resistance at higher levels, while notable put writing at 25,000, followed by 25,100 and 25,200, provides a downside cushion. This structure suggests bulls retain an edge as long as the index sustains above 25,700, though rallies may remain capped without fresh buying momentum.

Bank Nifty

Bank Nifty continues to show relative resilience, trading near the 59,500–59,600 zone with a gradually improving structure. The index is holding above short-term averages, indicating underlying strength in the banking space despite broader market caution. Immediate support lies at 59,300–59,200, with a deeper cushion near 59,000–58,800, while resistance is placed at 59,700–59,800 and the psychological 60,000 level. The outlook remains neutral to mildly positive, with range-bound trade likely between 59,300 and 59,800 unless supported by broader market strength or sector-specific rotation.