Trade Setup For Jan 1: Bulls Eye All-Time Highs As Nifty Reclaims 26,100 In Year-End Rally
Nifty's resistance is seen at 26,250 to 26,30 levels, analysts said.
The Indian equity markets signed off 2025 on a high note, witnessing a sharp broad-based rally on the final trading day of the year.
Shrikant Chouhan, head of equity research at Kotak Securities, noted that the benchmark indices formed a "promising reversal pattern" on daily charts. Aakash Shah, research analyst at Choice Broking, highlighted that the index has confirmed a breakout from its recent consolidation range, signaling a shift toward a bullish near-term structure.
The immediate resistance is now seen at 26,250 to 26,350. Bajaj Broking Research suggests that a move toward this zone might see some consolidation, but the broader trend remains constructive. Shrikant Chouhan eyes 26,250 as the immediate target, with a further push possible toward 26,350.
The psychological level of 26,000 has now turned into immediate support. Chouhan identifies 26,000 and 25,950 as critical zones for traders, as long as the market holds above these, the bullish sentiment is expected to persist.
Bank Nifty Outlook
The Bank Nifty outperformed the headline index, surging 410 points to close at 59,581.85. The index broke above the upper band of its trading channel, indicating accumulation at lower levels.
Choice Broking places immediate resistance at 59,800–59,900. Bajaj Broking notes that the breakout suggests potential for the index to move toward its all-time high zone near 60,100. The immediate support is seen at 59,500, with a stronger base established at 59,300 to 59,400.
Market Recap
The Nifty 50 ended 2025 with a decisive breakout, as the index surged 190.75 points or 0.74% up to settle at 26,129.60. The Sensex jumped 545.50 points or 0.64% to close at 85,220.60, supported by aggressive short covering and improved investor confidence as the January series commenced.
Volatility remained subdued, with the India VIX staying in a comfortable zone, setting a positive stage for the January 2026 series.
The final session of the year saw a rotation into cyclical and value sectors. Nifty Oil & Gas was the star performer, rallying 2.60%, led by heavyweight buying. Nifty IT remained the sole laggard, reflecting cautious global tech sentiment.
