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  5. Trade setup for Jan 8: NIFTY50 bounced back from 20 SMA levels, will it hold on Thursday?

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Trade setup for Jan 8: NIFTY50 bounced back from 20 SMA levels, will it hold on Thursday?

Upstox
By Upstox News Desk

2 min read | Updated on January 08, 2026, 07:52 IST

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SUMMARY

GIFT NIFTY futures indicate a negative start for the index for the fourth consecutive session. The global market cues also remain mixed with the US markets closing in red on Dow Jones & S&P500. The options data for current weekly expiry, indicates a narrow range of trade.

The broader market, however, was trading lower in early deals, with the Nifty Midcap 100 falling 0.11% and the Nifty Smallcap 100 losing 0.14%. Image: Shutterstock

GIFT NIFTY futures indicate weak opening for fourth consecutive session. Image: Shutterstock.

NIFTY50

Max call OI:26,200

Max put OI:26,000

(Ten strikes to ATM, 13 Jan expiry)

The global market cues for Thursday’s trading session remain mixed as the US markets largely closed in red, except for the NASDAQ. While Asian markets also traded mixed on Thursday morning, as Japanese indices fell nearly 1% amid profit booking near record high levels. The GIFT NIFTY futures negative start for NIFTY50 on Thursday, following the global trend.

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Nifty50_2026-01-08_07-33-00.png

On the technical charts, the NIFTY50 formed a doji candlestick pattern with a longer lower wick. The index fell to 26,067, taking support from the 20 SMA level of 26,081 and bounced back. As highlighted in the previous trade setup, the 20 SMA level will remain crucial support for the NIFTY50 in the near term. While 26,300 remains a crucial resistance.

jan08.png

On the options data front, the 26,200 calls witnessed strong open interest addition and hold the highest open interest, indicating a strong resistance for NIFTY50. Similarly, the 26,100 puts hold the highest open interest on the downside, indicating a strong support for the near term.

Stock Scanner

Long buildup: - Titan, HCL Tech

Short buildup: Cipla, Maruti

Top traded futures contracts: HDFC Bank, ICICI Bank

Top traded options contracts: HDFC Bank 980 CE

F&O securities under ban: SAIL

F&O securities out of the ban:

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