Nifty 50 is trading strong. The index has risen back sharply after making a low of 26,118 in the early trades. It is currently trading at 26,250 up 0.41 per cent. The advances/declines ratio is at 42:8. This is positive.
Nifty 50 outlook
Nifty has an immediate resistance at 26,260. A strong break above it can boost the momentum. Such a break will have the potential to take the index up to 26,500 in the coming days.
The region around 26,200 will now be a strong support for the index. Nifty has to fall below this support in order to turn the near-term picture negative. If that happens, then a fall to 26,100-26,050 will come into the picture.
Nifty 50 futures
The Nifty 50 January futures (26,390) is up 0.4 per cent. The resistance at 26,350 is broken now. It is important for the contract now to sustain above 26,350. If it does, then a rise to 26,500 and even 26,700 is possible in the coming days.
Strong support is in the 26,320-26,280 region. A fall to 26,220-26,200 will come into the picture only if the contract breaks below 26,280.
Trade strategy
The target on the long positions taken on Thursday at 26,280 has been hit. Now, traders can take fresh long positions on dips at 26,360. Keep the stop-loss at 26,280. Exit the long positions at 26,500.
Please note that this trade can be carried forward to next week.
Supports: 26,350, 26,300
Resistances: 26,500, 26,700
Published on January 2, 2026
