Short term - Technical Outlook

Nifty 50 remains stuck in a sideways consolidation phase within the 25,600–25,900 range following recent volatility. The index continues to trade below its 20-day and 50-day EMAs, indicating muted momentum. The formation of a small-bodied candle with an upper shadow highlights selling pressure at higher levels. Immediate support is placed at 25,600; a decisive breakdown below this level could open downside toward 25,500-25,400 and lower. On the upside, the 25,800–25,900 zone remains a strong supply area, supported by heavy Call OI. Only a sustained breakout above this band can trigger a relief move toward 26,000–26,100. Overall bias remains neutral to mildly bearish, with direction likely to emerge only on a decisive break outside the current range.
 

Short term Research Report Call

Buy Above: 25700 | Targets: 25750, 25800, 25850 | Stop-loss: 25600
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

Indian equity markets opened with a mild positive bias, supported by steady domestic institutional buying and fresh interest in IT stocks after Infosys raised its FY26 revenue guidance, providing a confidence boost to investor sentiment. Despite lingering caution due to mixed Asian cues, ongoing geopolitical developments, and persistent foreign institutional selling, early trade is reflecting underlying resilience. The Nifty is attempting to consolidate at higher levels, signalling that despite external uncertainties, strong domestic participation continues to lend stability to the overall market structure.

Nifty 50

Nifty 50 continues to draw strength from the bullish hammer candle formed on January 12, which marked a decisive defense near the 25,600 support zone. The index is currently consolidating within the 25,600–25,700 range, suggesting equilibrium after recent volatility. As long as Nifty holds firmly above this key support band aligned with a strong demand area and important short-term exponential moving averages the broader structure remains constructive. Immediate upside resistance remains in the 25,800–25,900 zone, where selling pressure has emerged repeatedly. A sustained breakout above the psychological 26,000 level will be required to confirm stronger bullish momentum and open the path toward 26,200 and higher levels. Current price behavior suggests that bulls are actively defending higher ground, with volatility remaining controlled rather than disruptive.

Options Open Interest data for the weekly expiry on January 20, 2026, reflects an improving downside structure and a gradual shift toward a more supportive market bias. Put-writing activity has strengthened across key strikes, indicating increased confidence among participants to defend lower levels. Cumulative Put Open Interest stands near 14.96 crore, while Call Open Interest is around 20.22 crore, keeping the Put–Call Ratio comfortably above 1.0. This positioning suggests that declines are likely to find support rather than trigger aggressive unwinding. On the upside, notable Call OI build-up at the 25,800 and 26,000 strikes indicates that call writers are still active at higher levels, capping sharp rallies in the near term. At the same time, heavy Put OI accumulation around the 25,700–25,600 zone reinforces this area as a strong cushion, reducing the probability of a sharp breakdown as long as these positions remain intact. Overall, the OI structure points to consolidation with a positive undertone, favoring gradual upside rather than abrupt directional moves.

Bank Nifty

Bank Nifty continues to display relative strength compared with the broader market, trading near the 59,760 region and holding comfortably above its short-term moving averages. The banking space remains resilient even as headline indices consolidate, reflecting selective leadership within the market. Immediate resistance is placed near 59,800, followed by the key psychological barrier at 60,000. The near-term outlook remains neutral to mildly positive, with range-bound trade likely between 59,300 and 59,800 unless supported by fresh sector-specific triggers or broader index momentum. A push toward 60,000 remains possible on positive cues, though sustained upside will require stronger conviction. On the downside, immediate support is seen at 59,300–59,200, with a deeper cushion near the 59,000–58,800 zone.