Nifty 50 has begun the week on a negative note. The index has declined sharply and is trading lower. It is currently at 25,563, down 0.51 per cent. The advance/declines ratio is at 20:30. This is negative and can drag the index further lower during the day.
Nifty 50 Outlook
The fall below 25,600 is negative. That indicates that the broader downtrend is intact. The level of 25,600 will now act as a good support-turned-resistance and cap the upside.
As long as the index stays below 25,600, the outlook will remain bearish. Nifty can fall to 25,400-25,300 in the coming sessions.
A strong rise above 25,600 is needed to ease the downside pressure and take the index higher to 25,800.
Nifty 50 Futures
The Nifty 50 January Futures (25,595) is down about 0.6 per cent. Resistance is now in the 25,650-25,700 region. The contract can test 25,500 during the day.
From a short-term perspective, the Nifty 50 January Futures contract looks vulnerable for a fall to 25,350 and even lower levels going forward this week.
The level of 25,800 is a higher and an important resistance. The contract has to breach this hurdle to get some breather.
Trade Strategy
Traders can wait for a rise. Go short at 25,620 and 25,660. Keep the stop-loss at 25,770 initially. Trail the stop-loss down to 25,590 as soon as the contract falls to 25,530. Revise the stop-loss down to 25,510 and 25,460 when the contract touches 25,470 and 25,420 respectively. Exit the short positions at 25,380.
Please note that this will be a positional trade and can be carried forward.
Supports: 25,350, 25,200
Resistances: 25,700, 25,800
Published on January 19, 2026
