Nifty eyes 26,500 on Monday as technicals stay firmly bullish
The Indian equity markets have begun 2026 on a strong note, with the benchmark Nifty 50 scaling a fresh lifetime high of 26,340 during Friday’s (January 2) session. The index closed at 26,328.55, up 182 points or 0.70%, supported by robust buying in banking, power and metal stocks. The BSE Sensex also ended higher, gaining 573.41 points or 0.67% to close at 85,762.01.
Market participation remained broad-based, with all sectoral indices closing in the green except FMCG, which declined 1.19%. Energy, Realty and Metal stocks emerged as top performers. The Nifty Bank index hit a fresh all-time high of 60,203.75 and settled 0.74% higher at 60,150.95. Broader markets mirrored the rally, as midcap and smallcap indices gained between 0.78% and 1.03%.
Market Breadth and Institutional Activity
Among Nifty 50 constituents, Coal India topped the gainers with a surge of over 7%, followed by NTPC, Hindalco, Trent, SBI, Bajaj Finance, ONGC and Reliance Industries. ITC led the losers’ pack, declining more than 3%, alongside Kotak Mahindra Bank, Nestle India and Bajaj Auto.
On the institutional front, Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth ₹289.80 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹677.38 crore. For the week ended January 2, Nifty rose 1.1%, while the Sensex added 0.84%.
Expert View: Trend Remains Firmly Positive
According to Vinod Nair, Head of Research at Geojit Investments, investor sentiment remains constructive as markets shift focus to Q3 earnings. Supportive fiscal measures and expectations of gradual monetary easing are likely to shape market direction in 2026, with investors favouring large-cap stocks for stability while selectively exploring cyclical mid-cap opportunities.
Ajit Mishra, SVP – Research at Religare Broking, said the prevailing trend remains positive, with the index poised to test the 26,500–26,700 zone in the near term. He advised market participants to focus on stock selection based on sectoral strength and favourable risk–reward setups.
Technical Outlook: Support at 26,200, Resistance Near 26,500
Technically, Nifty has formed a long bullish candle on the daily chart, indicating a decisive breakout from its recent consolidation phase. Nandish Shah, Deputy Vice President at HDFC Securities, noted that the index has convincingly surpassed earlier resistance levels of 26,236 and 26,325, opening the door for further upside towards 26,500 and beyond. Immediate support is seen around the 26,100–26,200 zone.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said the next upside target over the next one to two weeks could be around 26,750, based on Fibonacci extension levels. Momentum indicators also support the bullish view, with MACD showing a fresh buy signal and RSI moving above 60.
Derivatives Data Signals Bullish Bias
Derivatives data reflects a positive undertone, with significant Put writing of nearly 1.83 crore contracts at the 26,000 strike, establishing it as a strong support zone. On the upside, Call additions of around 1.13 crore contracts at 26,500 indicate near-term resistance. The Put-Call Ratio (PCR) has surged to 1.63, suggesting strong bullish sentiment.
Overall, with Nifty trading above all key short- and long-term moving averages, analysts believe the broader trend remains firmly positive, with the index likely to test 26,500 levels in the near term, barring any adverse global cues.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
