Nifty tanks 645 pts this week; more selloff ahead? Here's strategy for traders
Osho Krishan of Angel One said the week was a bit discouraging due to a lack of follow-up buying following the developments in Indian equities in the previous week.
- Jan 9, 2026,
- Updated Jan 9, 2026 4:29 PM IST
Nifty slipped on Friday, taking its losing streak to fifth straight session. The 50-pack index settled at 25,683.30, down 645 points or 2.45 per cent for the week. The NSE barometer fell further after slipping below its 50-day exponential moving average in the preceding session, giving the bears an edge.
Friday was the fourth session when Nifty made lower-high lower low formation. For the day, the index formed a long bearish candle on the daily chart, with long upper and lower wicks, suggesting a tug of war between the bulls and bears at the lower levels.
The decline has disrupted the short-term up move in the Nifty, with the index now retesting its medium-term support zone near the 100-day EMA around the 25,600 level, said Ajit Mishra, SVP for Research at Religare Broking.
"A decisive break below this could invite further pressure towards the 25,450 and 25,300 levels. On the upside, reclaiming the short-term moving average, i.e., the 20-day EMA around 26,000, may prove challenging," he said.
For the day, the index fell 193.55 points or 0.75 per cent
The week gone by Osho Krishan, Chief Manager -Technical and Derivative research at Angel One said the entire week's movement was a bit discouraging due to a lack of follow-up buying following the developments in Indian equities in the previous week.
"From a technical standpoint, the chart structure now shows a bearish bias, with the 25,500-25,400 zone identified as the next potential support area. On the flip side, the breakdown zone at 25900 (50-day EMA) is now expected to provide intermediate resistance, while the formidable barrier at 20-day EMA is positioned around the 26,000-26,050, and a sustained breakout could only reignite buying momentum in the index," Krishan said.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities a long bear candle was formed on the weekly chart that signals sharp reversal in the market after the consolidation movement of few weeks.
"This is not a good sign and indicates more weakness in the coming week. The underlying trend of Nifty continues to be weak. A slide below the support of 25700 could open more decline down to 25400 in the coming week. Immediate resistance is placed at 25900. What's ahead? Mishra of Religare Broking said a selective approach with controlled position sizing and balanced exposure on both sides is advisable in the current environment..
Kishan of Angel One advised traders to maintain light position and utilise bounce to exit from long positions. "Considering the current market conditions, it is prudent to adopt a cautious stance. Any upward movement in the market should be regarded as a valuable opportunity to lighten long positions, rather than fostering a sense of complacency. Furthermore, it is essential to monitor global developments pertaining to geopolitical issues and emerging tariff concerns, as any significant changes in these areas are likely to induce momentum within our markets," he said.
Nifty slipped on Friday, taking its losing streak to fifth straight session. The 50-pack index settled at 25,683.30, down 645 points or 2.45 per cent for the week. The NSE barometer fell further after slipping below its 50-day exponential moving average in the preceding session, giving the bears an edge.
Friday was the fourth session when Nifty made lower-high lower low formation. For the day, the index formed a long bearish candle on the daily chart, with long upper and lower wicks, suggesting a tug of war between the bulls and bears at the lower levels.
The decline has disrupted the short-term up move in the Nifty, with the index now retesting its medium-term support zone near the 100-day EMA around the 25,600 level, said Ajit Mishra, SVP for Research at Religare Broking.
"A decisive break below this could invite further pressure towards the 25,450 and 25,300 levels. On the upside, reclaiming the short-term moving average, i.e., the 20-day EMA around 26,000, may prove challenging," he said.
For the day, the index fell 193.55 points or 0.75 per cent
The week gone by Osho Krishan, Chief Manager -Technical and Derivative research at Angel One said the entire week's movement was a bit discouraging due to a lack of follow-up buying following the developments in Indian equities in the previous week.
"From a technical standpoint, the chart structure now shows a bearish bias, with the 25,500-25,400 zone identified as the next potential support area. On the flip side, the breakdown zone at 25900 (50-day EMA) is now expected to provide intermediate resistance, while the formidable barrier at 20-day EMA is positioned around the 26,000-26,050, and a sustained breakout could only reignite buying momentum in the index," Krishan said.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities a long bear candle was formed on the weekly chart that signals sharp reversal in the market after the consolidation movement of few weeks.
"This is not a good sign and indicates more weakness in the coming week. The underlying trend of Nifty continues to be weak. A slide below the support of 25700 could open more decline down to 25400 in the coming week. Immediate resistance is placed at 25900. What's ahead? Mishra of Religare Broking said a selective approach with controlled position sizing and balanced exposure on both sides is advisable in the current environment..
Kishan of Angel One advised traders to maintain light position and utilise bounce to exit from long positions. "Considering the current market conditions, it is prudent to adopt a cautious stance. Any upward movement in the market should be regarded as a valuable opportunity to lighten long positions, rather than fostering a sense of complacency. Furthermore, it is essential to monitor global developments pertaining to geopolitical issues and emerging tariff concerns, as any significant changes in these areas are likely to induce momentum within our markets," he said.