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  5. Expiry trade setup: Will NIFTY50 bounce back above 26,300 on Tuesday?

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Expiry trade setup: Will NIFTY50 bounce back above 26,300 on Tuesday?

Upstox
By Upstox News Desk

3 min read | Updated on January 06, 2026, 07:47 IST

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SUMMARY

GIFT NIFTY futures indicate a positive start for NIFTY50 on Tuesday morning. However, volatility is expected to remain throughout the day as India VIX jumped over 6%.

The broader market was trading in green in the early trade, with both the Nifty Midcap 100 and the Nifty Smallcap 100 rising 0.25% and 0.33%, respectively. Image: Shutterstock

NIFTY50 closed below the crucial resistance of record high levels. Image: Shutterstock.

NIFTY50

Max call OI:26,300

Max put OI:26,000

(Ten strikes to ATM, 06 Jan expiry)

The Indian markets are expected to open on a positive note on Tuesday, driven by global cues. The US markets closed at record highs, with the Dow Jones jumping 1.2%, followed by the S&P 500 at 0.69% and the NASDAQ at 0.65%, as energy and tech stocks fueled the rally. The Asian markets too remained positive on Tuesday morning, taking cues from the overnight gains in the US markets. The GIFT NIFTY futures traded over 70 points higher on Tuesday, at 7:30 am, indicating a gap-up opening for Indian markets.

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However, the volatility in the Indian markets is expected to remain high as India VIX jumped 6% to close above 10, indicating a volatile expiry session for NIFTY50 on Tuesday.

Nifty50_2026-01-06_07-19-42.png

On the technical front, the NIFTY50 closed below the record high resistance level, indicating exhaustion of buying power and profit booking at higher levels as highlighted in the previous trade setup. The support levels for the NIFTY50 remain intact at 26,000, and the 26,300 may act as a near-term resistance.

jan06.png On the options data front, the 26,300 calls witnessed heavy open interest addition, indicating a strong resistance for today’s expiry session. Similarly, the 26,000 puts continued to hold the highest open interest, indicating a strong support on the downside.

Expiry outlook

Bullish outlook: Traders with bullish sentiment can execute a long call strategy by buying 26,200 calls. The strategy would turn profitable after the index moves above 26,259.
Bearish outlook: Traders with a bearish outlook can execute a long put strategy by buying a put strike of 26,300. The strategy would turn profitable after the index moves below the 26,207 level.

To access a specially curated smartlist of the most traded and active stocks, as well as the OI gainers and losers, simply visit:

https://pro.upstox.com/ --> F&O --> Options smartlist/Futures smartlist. In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with a price increase, and short build-up means an increase in Open Interest(OI) along with a price decrease—source: Upstox and NSE.
Disclaimer: Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. The information is only for consumption by the client, and such material should not be redistributed. We do not recommend any particular stock, securities or strategies for trading. The securities quoted are exemplary and are not recommended. The stock names mentioned in this article are purely for showing how to do analysis
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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