Nifty 50 is managing to hold higher after witnessing a strong rise on Wednesday. It opened the day with a gap-up at 26,175.70 and has risen well. The index is currently trading at the day’s high of 26,195 and is up 0.23 per cent for the day. The advances/declines ratio is at 33:17. This is positive.
Nifty 50 outlook
Nifty has a resistance near current levels. A strong break above 26,200 can boost the momentum. Such a break can take the index up to 26,230 initially and then to 26,400 and higher eventually in the coming sessions.
Intraday support will be at 26,100. Nifty has to decline below this support in order to see a fall to 26,050. That is possible if it fails to breach 26,200 during the day.
Nifty 50 futures
Nifty 50 January futures (26,297) has come down sharply after making a high of 26,339 in the early trades. The contract has given back all the gains and is trading flat now. Immediate support is at 26,280. A break below it can drag the contract down to 26,230 during the day.
However, the broader bias is positive. So, a fall beyond 26,230 is less likely. As such we can expect the contract to reverse higher from around 26,230 and rise back to 26,350-26,400.
Overall, the bias is positive to see a rise to 26,350-26,400. But whether this rise is going to happen from here itself or after a dip to 26,230 is not very clear as of now.
Trade strategy
Positional trades can be considered at the moment. Traders can wait for dips. Go long at 26,280 and 26,240. Keep the stop-loss at 26,190. Trail the stop-loss up to 26,295 when the contract goes up to 26,315. Revise the stop-loss higher to 26,320 and 26,345 when the contract touches 26,340 and 26,360 respectively. Exit the long positions at 26,400.
Supports: 26,280, 26,230
Resistances: 26,350, 26,400.
Published on January 1, 2026
