Stock market trade setup for January 5: A long bullish candle on the daily chart
Indian equities are set to begin the January 5 session on a firm footing, with technical indicators, derivatives data, and broader market participation signalling sustained bullish momentum. The Nifty 50 scaled a fresh record high on January 2, extending its winning streak and strengthening market sentiment.
According to experts, the benchmark index needs a decisive breakout above 26,350 to unlock the next upside targets of 26,500–26,700. Until then, the index may consolidate, with 26,100–26,000 acting as a crucial support zone.
Key Highlights:
Nifty Performance:
The Nifty 50 gained 0.7 percent on January 2 to close at a new lifetime high. A long bullish candle on the daily chart, supported by above-average volumes, reflects strong buying interest.
Technical Setup (Nifty 50 – 26,329):
Resistance: 26,347 | 26,399 | 26,484
Support: 26,178 | 26,125 | 26,041
Indicators such as RSI (62.39), MACD, and Stochastic RSI remain bullish, with the index trading above all key moving averages.
Bank Nifty Strength (60,151):
The banking index rose 0.74 percent to hit a fresh record high, breaking past the 59,800 hurdle. RSI at 67.55 and a bullish MACD crossover indicate continued dominance by bulls.
Resistance: 60,209 | 60,319 | 60,497
Support: 59,853 | 59,743 | 59,565
Options Data – Nifty:
Maximum Call OI: 27,000 strike
Maximum Put OI: 26,000 strike
Heavy Put writing at 26,300 and Call writing at 26,500 suggests a 26,000–26,500 trading range in the near term.
Options Data – Bank Nifty:
Strong Put writing at the 60,000 strike and Call writing near 60,300 indicates firm support around current levels.
Put-Call Ratio (PCR):
The Nifty PCR surged to 1.46, the highest since September 2024, reflecting aggressive Put selling and reinforcing bullish sentiment.
Volatility:
India VIX rose marginally to 9.45, but remains near low levels, supporting a risk-on environment.
F&O Trends:
Long build-up: 93 stocks
Short covering: 80 stocks
Short build-up: 22 stocks
Long unwinding: 14 stocks
F&O Ban List:
SAIL remains under the F&O ban; no new stocks were added or removed.
Market Outlook:
With strong technical indicators, supportive derivatives data, and broad-based participation, the overall bias remains positive. However, traders will closely watch 26,350 on the Nifty for confirmation of a fresh breakout, while defending key support near 26,000.
Disclaimer: Market views are for informational purposes only. Investors are advised to consult certified financial experts before taking trading decisions.
