Nifty Rings in 2026 with Record High, Enters Uncharted Territory as Bulls Take Firm Control

Market Snapshot: Nifty Begins 2026 on a Historic High

The Nifty 50 kicked off 2026 on a historic note, scaling its first all-time high of the year and extending intraday gains to 26,340. Friday’s session witnessed strong bullish follow-through, with the index decisively surpassing its previous record high and entering uncharted territory.

The benchmark surged 182 points to close at 26,328.55, signalling the onset of a fresh bullish phase and renewed optimism among market participants. The breakout reflects improving market breadth, sustained buying interest, and strong investor confidence as the new calendar year begins.

Technical View: Breakout from Consolidation Confirms Bullish Structure

From a technical perspective, Nifty is trading at record highs after breaking out of a prolonged consolidation phase, supported by a strong close on both daily and weekly charts. The price structure continues to form higher lows, reinforcing the strength of the prevailing uptrend.

The index remains comfortably placed above its 20-day Exponential Moving Average (DEMA), a key indicator that the bullish structure remains intact and declines are being actively accumulated. Former resistance zones have now transitioned into strong support areas, further validating the sustainability of the uptrend.

The breakout from consolidation increases the probability of continued follow-through buying, with buyers firmly defending key support levels and maintaining clear dominance.

Momentum Indicators Signal Strengthening Trend

Momentum indicators continue to support the bullish bias. The Relative Strength Index (RSI) has broken above and is sustaining above the 60 mark, signalling a revival of bullish momentum and the early stages of a strong trending move.

As long as the index holds above the psychological 26,000 level, any intraday declines are likely to be viewed as buy-on-dips opportunities. A decisive move above 26,350 could open the door for fresh highs near the 26,500 zone in the near term.

Derivatives Snapshot: Strong Put Writing Reinforces Support

The derivatives setup echoes the bullish undertone in the cash market. Put writers have added fresh positions at at-the-money and nearby strikes, creating a strong base and limiting downside risks.

In contrast, call writers have aggressively unwound earlier positions and shifted exposure to higher strikes, signalling expectations of continued upside rather than an immediate correction.

A significant build-up of nearly 1.83 crore contracts at the 26,000 put strike has firmly established this level as a crucial support zone. On the upside, the addition of approximately 1.13 crore call contracts at the 26,500 strike has emerged as a key near-term resistance area.

The Put-Call Ratio (PCR) has surged to 1.63, reflecting strong bullish sentiment and buyer dominance at lower levels. While elevated PCR readings may occasionally trigger brief profit-booking, the overall derivatives structure continues to favour upside continuation.

Market Outlook: Buy-on-Dips Strategy Remains Intact

Nifty has delivered a convincing bullish breakout, registering fresh all-time highs and entering uncharted territory. The persistent higher-low structure highlights strong underlying demand, with declines being swiftly absorbed near support levels.

The 26,200–26,100 zone has now emerged as an immediate support band and will be critical in maintaining short-term stability. Aggressively put writing near at-the-money strikes reflects rising confidence and expectations of a further decisive upside move.

A sustained follow-through above 26,350 could trigger additional short covering, potentially propelling the index toward new record highs near 26,500. On the downside, any pullbacks toward 26,100 are expected to attract buying interest, keeping the broader buy-on-dips approach firmly intact in the near term.