Nifty 50 Price Structure Analysis [01/01/2026: Thursday]Top-Down Nifty 50 Price Structure Analysis for 01st of January 2026. The day is Thursday.
(1) Monthly Time Frame:
The candle is a red paper umbrella plus an inside candle. The lower wick of the candle is longer as compared to the red body. It means the bears tried to push down the price, but the bulls are defending hard for their existence. Major resistance is 26200. Major support is 26000. The view is indecision.
(2) Weekly Time Frame:
This week's candle is kind of a green dragonfly doji with a body of a green spinning top. Candle structures are imperfect but sufficient enough to offer psychological insights. Most importantly, this week's candle engulfed last week's bearish gravestone doji formation. For the past 4 weeks, the price has been within the range (26200 - 25900). Bears are badly trapped at the level 25900. Price gave a close above the level 26100 (which was previously a major resistance). Major resistance is 26200 while major support is 26000. Since it is the season of consecutive dojis (indecision candles) in Nifty 50, we still cannot build conviction of the trend. It is a sideways market for 10 weeks. However, this week's lower wick is long, showing signs of bullish emergence. The view is indecision to bullish.
(3) Daily Time Frame:
The daily candle is an imperfect bullish marubozu. There is no lower wick, but there is an upper wick that formed due to sharp selling below the level 26200. However, the green candle structure engulfed the previous 3 red days. Very strong support is now at level 26000. Level 26100 is presently a weak support, but as the price spends more time above level 26100, it will become a strong support. The view is indecision to bullish.
(4) 30-Minute Time Frame:
Price has been in a zig-zag price structure since mid-November. For bullish sustenance, it is necessary for the price to trade above the level 26200 for a longer time with a promise of breaking out the previous all-time high (ATH: 26277.35). Major resistance is 26200. Weak support is 26100. Major support is 26000. In the present market condition, every downward move should be doubted. The view is bullish.
Bullish Scenario Set-Up:
(i) Price sustains above the opening price.
(ii) Price stays above the level 26100 for a long time.
(iii) Price shows promise of breaking out above the level 26200.
Bearish Scenario Set-Up:
(i) Price sustains below the opening price.
(ii) Price starts to trade below the level 26050, with a sign of breaking down the level 26000.
No Trading Zone (NTZ): (26100 - 26050)
Events: SENSEX weekly expiry. No other high-impact event.
Summary of the Trading Plan (Hypothesis and Insights):
(i) The monthly TF bias is indecision.
(ii) The weekly TF bias is indecision to bullish.
(iii) The daily TF bias is indecision to bullish.
(iv) The 30-minute TF bias is bullish.
(v) Establish intraday bias with respect to the opening price.
(vi) Weekly SENSEX expiry. No other high-impact event. Expecting a choppy market in the first half. Price will probably remain below the level of 26200 in the first half.
(vii) Major resistance is 26200.
(viii) Weak support is 26100.
(ix) Major support is 26000.
(x) No Trading Zone (NTZ): (26100 - 26050).
(xi) Execute bullish trade when price sustains above 26100 for a long time with a promise of breaking out level 26200.
(xii) Execute bearish trade when price starts to trade below level 26050 with a promise of breaking down level 26000.
(xiii) Take trades only if either a bullish/bearish scenario appears. Otherwise, do not trade. Remember, not trading is an extension of trading activity. Be responsible.
NOTE:
"Mark your points. Trade your points. Price is God. Anything can happen in the markets. Therefore, trade what you see, not what you believe."
Happy Trading!
