The Indian stock market witnessed strong bullish momentum on January 2 as both Nifty 50 and Bank Nifty confirmed a convincing consolidation breakout and closed at fresh record highs. The breakout was supported by strong volumes and positive momentum indicators, improving the short-term outlook ahead of the December quarter earnings season.
After initial volatility, Nifty 50 gained strength throughout the session and touched an intraday high of 26,340 before closing at a record 26,329, up 182 points or 0.7 percent. On the daily and weekly charts, the index formed strong bullish candles, reflecting sustained buying interest. The Nifty continues to trade above all key short- and long-term moving averages, while RSI remains above 60 and MACD has generated a fresh buy signal.
Options data suggests a bullish bias with resistance near the 26,500–27,000 zone and strong support placed between 26,200 and 26,000. A close above these levels could open the door for further upside toward 26,750 in the short term.
Bank Nifty also remained strong, gaining 439 points to close at 60,151. A bullish flag-and-pole breakout on weekly charts indicates potential targets of 61,500 and 62,500, with immediate support near 59,300. Lower India VIX levels continue to favor bulls, suggesting a positive trend in the near term.