January 2026: Market momentum remains constructive as the Nifty 50 continues to trade above key support levels, and technical indicators suggest the possibility of further upside in the near term. According to Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research at SBI Securities, the benchmark index could move towards 26,500 in the coming week, provided it sustains above crucial support zones.
Nifty Technical Outlook
Shah noted that the Nifty has managed to hold above its short-term and medium-term moving averages, indicating underlying strength despite intermittent volatility. The index has also formed a higher high–higher low structure on the daily charts, a pattern that typically signals continuation of an uptrend.
“Momentum indicators are supportive, and as long as the Nifty holds above the 26,000–25,950 zone, the bias remains positive. On the upside, 26,400–26,500 is the next immediate target,” Shah said. However, he cautioned that any decisive break below support could invite profit booking.
Stocks to Watch: Bullish Picks
Among individual stocks, Shah highlighted four counters that appear technically strong and well-positioned for further upside in the near term.
- NHPC: The stock has shown a strong breakout from a consolidation phase, supported by rising volumes. Shah believes NHPC could continue its upward move as long as it holds above its key support levels, aided by strength in the broader power sector.
- Bosch: Bosch has resumed its uptrend after a brief correction and is trading above important moving averages. The stock’s structure remains bullish, and Shah expects it to extend gains in the coming sessions.
- Two other stocks (not disclosed in detail) were also cited as having favorable risk-reward setups, backed by improving momentum indicators and sectoral tailwinds.
Caution Flag on ITC
While remaining constructive on the broader market, Shah advised caution on ITC, which witnessed a sharp fall in the previous week following regulatory and excise-related developments.
“ITC has broken below key support levels, and the recent decline has damaged its short-term technical structure. Until the stock stabilises and shows signs of base formation, traders should remain cautious and avoid aggressive positions,” he said.
Strategy for Traders
Shah suggested that traders adopt a buy-on-dips approach in select stocks rather than chasing prices at higher levels. With geopolitical risks and global cues adding to volatility, maintaining disciplined stop-losses remains crucial.
Overall, the technical setup indicates that the broader trend remains positive, with the Nifty likely to attempt a move towards 26,500 in the coming week, even as stock-specific action continues to dominate market activity.
