Although the India VIX looks to be continuing its advance into the 12 zone, the quick rebound from the day’s low and the construction of a bullish reversal pattern (penetrating line) after a five-day correction have fuelled expectations of a further rally in the Nifty 50. In the next sessions, it will be important to keep an eye on the 25,900–26,000 levels if the index continues to rise.
Nifty 50 and Bank Nifty Market Setup
But 25,700 is the level of imminent support. The Bank Nifty, however, is anticipated to encounter an immediate obstacle around 59,700, as holding above this level may pave the way for a rise over the 60,000 range. Experts predicted that the 59,200–59,000 range will serve as quick support on the decline, with 58,700 serving as a crucial support zone.
The Bank Nifty increased 199 points (0.34 percent) to 59,451 on January 12, while the Nifty 50 increased 107 points (0.42 percent) to 25,790. On the NSE, however, the market breadth continued to favor bears, with around 1,866 shares falling vs 1,044 rising shares.
📊 Nifty 50 Key Trading Levels
- Current Close: 25,790
- Immediate Support: 25,700
- Major Support Zone: 25,500–25,450
- Immediate Resistance: 25,900–26,000
- India VIX: Rising toward 12–13 zone
- Preferred Strategy: Buy-on-dips, sell-on-rallies
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Nifty Strategy and Outlook
Jay Thakkar, ICICI Securities’ vice president and head of derivatives and quantitative research
The Nifty 50 managed to end far above the 25,700 mark, which was crucial support for the previous series, after making a strong comeback from the day’s low. As long as the 25,450 level is maintained, a closing above 25,700 suggests that a short-term bottom is in place.
As expected, the India VIX finished 4.05 percent higher at 11.37, getting close to its short-term goal of 12. From this point on, the VIX is probably going to see some more upside, at least until Budget Day, and it may even touch the 13 level. It is unlikely to drop below 10, however, so future market volatility cannot be completely ruled out.
Nifty Trading Range and Strategy
The 26,000 level is the crucial level to keep an eye on, according to the options data for this series. The index’s short-term range is probably going to stay between 26,000 and 25,500 till the Nifty closes above it. Therefore, unless there is a breakthrough or breakdown from this range, it is best to use a buy-on-dips and sell-on-rallies approach.
Important Barriers: 26,000, 26,100
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Important Assistance: 25,600, 25,450
Strategy: Purchase Nifty Futures with targets of 26,000 and 26,100 on falls between 25,650 and 25,700, with a stop-loss below 25,450.
Jigar S. Patel, Anand Rathi’s Senior Manager of Equity Research
The Nifty made a dramatic comeback from the day’s low during the most recent trading session, rising more than 300 points and closing just below the 25,800 level. Technically, the index found solid support around the 25,450–25,500 zone, which is consistent with the flat Ichimoku cloud and a prior demand region from November 2025, highlighting its significance as a support base.
The RSI has above the 50 mark on the 30-minute chart, indicating better momentum and the possibility of further recovery in the next sessions, while the DMI has shown a bullish crossing.
Furthermore, after falling to 0.50 intraday, the Nifty Put–Call Ratio (PCR) is now at 0.88, indicating a more comfortable and balanced market stance. All things considered, these encouraging technical signs suggest that bullish momentum will soon resume.
SMC Global Securities View
Following the US Ambassador’s positive comments on a possible trade agreement, market mood increased. Technically, the Nifty has recovered short-term supports thanks to the comeback, suggesting that selling pressure may be lessening.
🏦 Bank Nifty Key Trading Levels
- Current Close: 59,451
- Immediate Support: 59,200–59,000
- Critical Support Zone: 58,900–58,700
- Immediate Resistance: 59,700
- Breakout Zone: 60,000–60,300
- Market Bias: Sideways to positive
Frequently asked questions
1. Is it possible for the Nifty 50 to recover 25,900 soon?
Indeed, there has been a positive reversal from lower levels in the Nifty 50. To confirm more gains above 26,100–26,200, a sustained rise over 25,900–26,000 is essential.
2. What is the Nifty 50’s immediate support?
A firmer foundation in the 25,500–25,450 range comes after immediate support at 25,700. By maintaining these levels, the short-term trend remains favorable.
3. What effect does the growing India VIX have on the market?
Moving around 12–13 on the India VIX indicates further volatility in the future, particularly as Budget Day draws near.
4. Will the Bank Nifty surpass 59,700?
For the Bank Nifty to try a breakthrough above 60,000–60,300, it must maintain a closing above 59,700.
5. What is the Bank Nifty’s primary support zone?
There is instant support in the 59,200–59,000 level. The essential demand zone is 58,900–58,700 below this.
Conclusion
Both the Bank Nifty and the Nifty 50 have recovered sharply from recent lows, suggesting that short-term bottoms could be in place.
Disclaimer
This analysis is for informational and educational purposes only and does not constitute investment advice.
