Trading Plan: Can Nifty 50 defend 26,200, Bank Nifty hold above 60,000 amid possible consolidation?

Nifty Trading Plan for January 5

• In case of any profit booking, the Bank Nifty may take support at 60,000–59,900, followed by 59,700 as a crucial support. On the upside, surpassing 60,200 can open the door for 60,500.

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The Nifty 50 and Bank Nifty reported a record closing high, supported by healthy momentum and positive technical indicators. If the Nifty 50 manages to climb and sustain above the 26,350 zone, a rally toward 26,500 is possible. However, if it sustains below 26,350, consolidation may occur, with immediate support at 26,200, followed by 26,000 as a key support level. Meanwhile, in case of any profit booking, the Bank Nifty may take support at 60,000–59,900, followed by 59,700 as a crucial support. On the upside, surpassing 60,200 can open the door for 60,500, experts said.

On January 2, the Nifty 50 jumped 182 points (0.7 percent) to 26,329, while the Bank Nifty rallied 439 points (0.74 percent) to 60,151, with market breadth favouring bulls. About 2,034 shares advanced compared to 830 declining shares on the NSE.

Nifty Outlook and Strategy

Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One

The commencement of the new calendar year was marked by a robust performance, with the benchmark index clocking unprecedented highs, reflecting an optimistic market outlook. The bullish sentiment gained traction, successfully navigating a previously sluggish phase and reviving market momentum. Ultimately, with broader participation, the Nifty 50 index concluded the week with a 1.10% return, indicating the potential for continued growth in forthcoming sessions.

Technically, the daily timeframe shows a distinct pattern of higher highs and higher bottoms, suggesting a strong upward trend in the market. With the benchmark index propelling into uncharted territory, identifying potential resistance seems challenging. However, following the consolidation breakout, the potential upside is forecast around the 26,500–26,600 range in the near term. On the flip side, the previous resistance of 26,200–26,150 is now likely to cushion any decline, while the sacrosanct support is placed at the 26,000 pivot.

Key Resistance: 26,500, 26,600

Key Support: 26,150, 26,000

Strategy: Buy Nifty Futures around 26,200–26,150, with a stop-loss of 26,000, and book profits near 26,500–26,600.

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

On the weekly chart, Nifty has formed a bullish candle with a lower shadow, indicating buying interest near the lower boundary of the rising channel. The index successfully defended key support levels of both the channel base and the psychological 26,000 mark.

For the uptrend to continue, a sustained close above 26,350 is essential. A decisive move past 26,500 could attract fresh buying, potentially pushing the index toward the 26,600–26,800 range. Conversely, a break below 26,100 may lead to selling pressure, pulling Nifty toward the 26,000–25,800 support area.

In the week ahead, Nifty is expected to trade within the 25,700–26,800 range, with a positive outlook. The weekly RSI has turned positive above its reference levels, further reinforcing the underlying bullish momentum.

Key Resistance: 26,400, 26,550

Key Support: 26,200, 26,100

Strategy: Buy Nifty Futures around 26,280, with a stop-loss of 26,200, targeting 26,500–26,600.

Anshul Jain, Head of Research at Lakshmishree Investments

The Nifty printed a wide-range bullish candle, decisively neutralising the prior five-week consolidation. This expansion bar signals a structural breakout rather than a false spike, with price escaping a well-defined rectangle. The immediate demand zone lies between the previous all-time high and the recent daily swing high, together forming a strong cushion on declines. This zone is expected to absorb supply and offer high-probability long entries on any bullish reaction.

Only a sustained break below the lower boundary of this range would invite a deeper retracement, though the current structure suggests this is unlikely in the near term. Momentum indicators and moving averages have just transitioned out of a resting phase and remain far from overbought, leaving ample room for extension. A sustained move above 26,350 should add velocity, initially driving the index toward 26,500. If the rectangle breakout holds, the measured move projection points toward 27,050 over time.

Key Resistance: 26,500, 27,050

Key Support: 26,325, 26,233

Strategy: Buy Nifty Futures on dips to 26,300–26,250, with a stop-loss below 26,200, and add above 26,350 for a target of 26,500.

Bank Nifty - Outlook and Positioning

Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One

Bank Nifty delivered a highly productive week, as prices surged past previous all-time highs with relative ease. Looking ahead, the outlook remains constructive, with prices poised to move further into uncharted territory. Trends across all timeframes remain firmly aligned to the upside, and participants may consider initiating long positions on dips, preferably near immediate support zones.

In terms of levels, the previous resistance area of 59,500–59,400 is now expected to act as immediate support, followed by a strong and pivotal support zone at 58,750–58,700. As prices venture into new territory, identifying resistance becomes challenging; however, psychological round numbers at 60,500 and 61,000 may act as potential resistance levels, followed by the 78.6% Fibonacci extension near 61,380.

Key Resistance: 60,500, 61,000

Key Support: 59,500, 58,750

Strategy: Buy Bank Nifty Futures on dips at 60,000–59,800 for a potential target of 61,000, with a stop-loss of 59,200.

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

Bank Nifty closed with a substantial weekly gain of 1,140 points. On the weekly chart, the index formed a bullish candle with a clear higher high and higher low structure, reinforcing a positive trend.

A sustained move above 60,200 could attract fresh buying and push Bank Nifty toward the 60,500–61,000 range. Conversely, a dip below 59,700 might lead to profit-taking, pulling the index down to the 59,500–59,000 support zone.

Looking ahead to the coming week, Bank Nifty is expected to trade within the 59,000–61,000 range with a positive bias. This outlook is supported by momentum indicators, as both the weekly RSI and the Stochastic Oscillator have turned positive and remain above their respective reference levels.

Key Resistance: 60,300, 60,600

Key Support: 59,900, 59,750

Strategy: Buy Bank Nifty Futures around 59,950, with a stop-loss of 59,750, targeting 60,350–60,600.

Anshul Jain, Head of Research at Lakshmishree Investments

A sustained hold above the 60,000 mark should add momentum and propel the Bank Nifty toward the measured objective near 61,400. On the downside, the zone between the previous all-time high and the recent daily swing high forms a strong cushion, where dips are likely to attract fresh buying interest.

Moving averages have turned upward in unison, while momentum indicators are just emerging from a resting phase and remain far from stretched. This alignment suggests that the upside journey should remain orderly, with pullbacks offering opportunities rather than threats. Overhead supply is expected to emerge in the higher resistance band before momentum resumes.

Key Resistance: 60,500, 60,740, 61,400

Key Support: 60,114, 59,807

Strategy: Buy Bank Nifty Futures on dips to 59,800 and add above 60,200, with a stop-loss below 59,500, targeting 62,000.