(Continuation of the 07 January 2026 Market Outlook)
This Nifty 50 Futures analysis for Thursday, 08 January 2026 is a direct continuation of our previous session’s outlook. The objective remains unchanged: to track how price structure is evolving around key levels and to convert that understanding into practical, executable trading decisions rather than predictions.
In yesterday’s analysis, we highlighted that although Nifty Futures had started to show signs of consolidation, the broader daily trend was still positive. We also cautioned traders against chasing prices near resistance and advised a confirmation-based approach.
Today’s price action builds further on that narrative.
Daily Price Action Update: What Changed and What Didn’t
In the previous session, Nifty Futures printed a lower high and lower low for the first time after a sustained up-move, indicating a slowdown in momentum. In today’s session, the market has repeated this behaviour, forming a second consecutive lower high and lower low. From a short-term structure perspective, this is a bearish development and clearly shows that upside momentum is weakening near higher levels.
However, today’s candle also carries an important message that should not be ignored.
The daily candle has formed a Doji, reflecting indecision between buyers and sellers. This Doji has appeared after a mild decline and close to an important support area, which changes its interpretation. Rather than signalling panic selling, it suggests that selling pressure is losing strength and buyers are attempting to defend lower levels.
This defence becomes even more relevant when we observe that Nifty Futures took support near the 26,194 zone during the session. This level is emerging as a short-term demand area, indicating that buyers are still willing to step in on dips.
In summary, the market is showing controlled weakness, not breakdown. Sellers are able to push prices slightly lower, but buyers are not allowing the market to collapse.
Linking Yesterday’s Structure with Today’s Signals
Yesterday’s blog emphasized that Nifty Futures was consolidating near the 26,250 zone rather than aggressively rejecting higher levels. Today’s price action confirms that view.
The market is neither continuing the uptrend nor reversing sharply. Instead, it is compressing within a range, marked by:
- Consecutive lower highs and lower lows (short-term bearish)
- A Doji candle (indecision and loss of momentum)
- Support holding near 26,194 (bullish defence)
This combination typically precedes a range expansion, but direction will only be known after confirmation.
Key Levels to Focus on for 08 January 2026
The immediate support zone now lies between 26,200 and 26,080, with 26,194 acting as a reference level. A sustained break below this zone would confirm that the lower high–lower low structure is gaining control.
On the upside, 26,260–26,280 remains the immediate resistance band. A move above this zone with acceptance would negate the short-term bearish structure and indicate that the consolidation phase is resolving upward.
Intraday Trading Strategy: Execution Over Emotion
Given the current setup, intraday traders should trade only on confirmation.
If Nifty Futures manages to hold above 26,280 and shows stability, it would indicate that today’s Doji is acting as a base. In such a scenario, long positions can be considered with upside potential towards 26,350 and 26,420. A stop loss below 26,180 is essential, as a failure to sustain above resistance would quickly invalidate the trade.
Conversely, if the market breaks below 26,080 and fails to reclaim it, it would confirm that sellers are taking control. Short trades can then be planned towards 26,020 and 25,950, with a protective stop loss near 26,180.
Trading inside the narrow band between 26,100 and 26,260 should be avoided, as this zone reflects indecision and low-probability trades.
Positional Trading View: Trend Under Test, Not Broken
From a positional perspective, the broader trend remains positive as long as Nifty Futures holds above 25,950 on a closing basis. However, the back-to-back lower high–lower low candles suggest that positional traders should remain selective and patient.
A strong daily close above 26,500 would invalidate the recent short-term weakness and signal continuation of the broader uptrend, with upside potential towards 26,750 and 26,950.
On the other hand, a decisive close below 25,950 would mark a structural breakdown and shift the positional bias towards a corrective phase, with downside levels near 25,650 and 25,400.
Market and Fundamental Context
The broader market environment remains mixed. Global cues continue to be influenced by movements in bond yields and expectations around interest rate trajectories. Any sudden shift in global yields can impact index momentum, especially at higher valuations.
Domestically, traders are positioning cautiously ahead of the earnings season and early expectations around the Union Budget. This explains why markets are consolidating near resistance instead of extending aggressively.
Stable domestic liquidity is providing support on declines, which aligns well with the technical observation of buying interest near 26,194.
Final Trading Perspective
Today’s Doji candle, combined with support near 26,194 and a short-term lower high–lower low structure, clearly signals a market in balance, not in trend.
For Thursday, 08 January 2026, traders should avoid assumptions and focus strictly on level-based execution. The next meaningful move will come only after the market resolves this consolidation.
In such phases, discipline is the real edge.
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Disclaimer
The views and analysis provided above are for educational and informational purposes only and should not be considered as financial or investment advice. Trading and investing in the stock market involve risk, and past performance does not guarantee future results.
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