The market may remain range-bound until it trades below Monday’s high. Below are some short-term trading ideas to consider.
As long as the Nifty 50 holds above 26,200, the possibility of a rebound towards the 26,400–26,500 zone cannot be ruled out. However, a decisive break below this level could push the index into a consolidation phase, with 26,000 emerging as a crucial support.
Consumer electronics maker Mirc Electronics shares were locked in 10 percent upper circuit at Rs 31.71 amid large volumes on the NSE, extending uptrend for another session.
The past year saw FII/FPIs remain as net sellers, offloading Indian equities worth Rs 2.92 lakh crore. On the other hand, DIIs added strength to the market with their buying spree reaching Rs 7.85 lakh crore for the year so far.
The weekly options data suggested that Nifty may face resistance in the 26,400–26,500 zone, while support is placed at 26,200–26,000 levels.
Limited supply impact, stable crude prices and rate-sensitive optimism help Dalal Street look past geopolitical headlines
Sensex, Nifty recovered sharply amid buying in blue-chip stocks such as RIL, while renewed buying by FIIs further lifted market sentiment.
Sensex, Nifty declined on selling in IT shares amid concerns over potential additional US tariffs after US President's latest comments.
A large part of that underperformance has already played out through valuation correction. Because of the underperformance, India’s valuation premium over emerging markets has come down sharply, Devalkar said.
Indian equities began 2026 strongly as Nifty50 hit a record, extending weekly gains, led by autos and earnings optimism, with midcaps outperforming despite FII selling
One can certainly expect Nifty 50 to inch higher so long as it stays above 26,000 level, said Milan Vaishnav.
With expansionary fiscal and monetary policies, India could see acceleration in nominal GDP growth, which is one critical item for corporate earnings growth, said Chanchal Agarwal.
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.
The trend may remain positive despite intermittent consolidation and minor profit booking. Below are some short-term trading ideas to consider.
The Nifty 50 needs to decisively surpass 26,350 for a move towards 26,500–26,700. Until then, it may consolidate with range-bound trading, with the 26,100–26,000 zone acting as a key support, according to experts.
The market in the coming week starting from January 5 is expected to be rangebound with positive bias with focus on provisional quarterly business updates, though initially there could be some negative reaction to geopolitical tensions between US and Venezuela, experts said.
Among sectors, Nifty Metal and PSU Bank indices added 5 percent each, while Nifty Auto, Media, Energy, Oil & Gas rose 3 percent each
With valuations now normalized to more reasonable levels and corporate earnings showing signs of improvement, the outlook favours Indian markets in the year ahead, said Shailendra Kumar.
Sudeep Shah believes NHPC and Bosch look well poised to extend their upmove in the coming week, but advised caution on ITC after sharp fall last week.
Domestic Institutional Investors (DIIs) extended their support as they bought equities worth Rs 17766.57 crore.
While global challenges may persist, domestic-facing sectors with stronger balance sheets and operating leverage are better positioned to deliver positive earnings surprises, said Siddharth Vora.
Shyam Dhani shares rebounded 0.52 percent to Rs 126.75 on Friday, following 5 percent correction each in previous two sessions.
The past year saw FII/FPIs remain as net sellers, offloading Indian equities worth Rs 2.92 lakh crore. On the other hand, DIIs added strength to the market with their buying spree reaching Rs 7.85 lakh crore for the year so far.
Weekly options data also indicated that the Nifty 50 is expected to march toward the 26,500–27,000 range, with support placed in the 26,200–26,000 zone.
Siddhartha Bhaiya was a prominent figure in India's investment landscape, known for his contrarian strategies and exceptional track record