Nifty 50 Futures Intraday & Positional Trading Strategy
Date: Tuesday, 06 January 2026
This analysis is prepared specifically for intraday and positional traders, focusing on actionable levels, price behaviour, and execution clarity rather than prediction.
Daily Price Action Insight Traders Must Understand
Despite a decline of nearly 0.48%, the latest daily candle on Nifty 50 Futures has formed a higher high and a higher low compared to the previous session. This is a crucial price-action signal.
For traders, this structure indicates that selling pressure is not aggressive. Instead, the market is witnessing controlled profit booking, where buyers are stepping in at higher levels than before. This behaviour keeps the broader trend intact.
Another important confirmation comes from the Nifty 50 spot index, where the previous lifetime highs remain protected. As long as this breakout zone holds, the market should be treated as consolidating within an uptrend rather than entering a reversal phase.
Key Support and Resistance Levels for Nifty 50 Futures
- Immediate support zone: 26,200 – 26,080
- Intraday resistance zone: 26,400 – 26,450
- Major positional resistance: 26,550 – 26,600
- Structural breakdown level: Below 26,050
These levels form the base for both intraday and positional trade planning.
Intraday Trading Strategy for Nifty 50 Futures (06.01.2026)
Intraday Buy Strategy
As long as Nifty Futures holds above 26,200, the higher-low structure remains valid.
Trade Setup
- Buy near: 26,240 – 26,280
- Stop loss: 26,170
- Targets:
- First target: 26,360
- Second target: 26,420
Why this works:
The higher-low formation suggests dip buying interest. This setup aligns with structure and avoids chasing price at higher levels.
Intraday Sell Strategy (Only on Breakdown)
Short trades should be attempted only if the market shows clear weakness.
Trade Setup
- Sell only below: 26,190 (sustained)
- Stop loss: 26,280
- Targets:
- First target: 26,080
- Second target: 26,000
Why this works:
A sustained break below 26,200 would invalidate the intraday bullish structure and allow momentum-based selling.
Positional Trading Strategy for Nifty 50 Futures
Positional Buy Strategy (Trend Continuation)
The protection of lifetime highs keeps the positional bias positive.
Trade Setup
- Buy on daily close above: 26,450
- Stop loss: 26,080
- Targets:
- 26,700
- 26,880
This confirms acceptance above resistance and continuation of the broader uptrend.
Positional Sell Strategy (Trend Failure)
Positional shorts are valid only if the structure breaks decisively.
Trade Setup
- Sell on daily close below: 26,050
- Stop loss: 26,320
- Targets:
- 25,850
- 25,600
Below this level, both the higher-low pattern and breakout structure fail.
Market Context Supporting the Strategy
Recent strength in precious metals indicates global risk caution, which explains consolidation near resistance rather than aggressive upside. At the same time, domestic participation and flow stability are helping Nifty protect its breakout levels.
This environment generally favours range-based trading with defined risk, making level-based intraday and positional strategies more effective than directional bets.
Final Trading View for Traders
- Trend: Positive but consolidating
- Intraday bias: Buy on dips above 26,200
- Positional bias: Bullish unless 26,050 breaks
- Approach: Level-based, disciplined execution
This is a market where structure matters more than headlines.
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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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