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  5. Trade setup for Jan 9: NIFTY50 breaks crucial support of 26,000, will it bounce back?

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Trade setup for Jan 9: NIFTY50 breaks crucial support of 26,000, will it bounce back?

Upstox
By Upstox News Desk

2 min read | Updated on January 09, 2026, 07:49 IST

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SUMMARY

GIFT NIFTY futures indicate a positive start for the NIFTY50 with mixed global cues. The US markets closed mixed, with only the Dow Jones advancing 0.5%. On the other hand, the options data indicate further pain with the highest open interest on the downside at 25,500 levels.

The Nifty Midcap 100 and the Nifty Smallcap 100 were trading 0.24% and 0.02% lower, respectively. Image: Shutterstock

GIFT NIFTY futures indicate for a positive start on Friday after sharp selloff on Thursday. Image: Shutterstock.

NIFTY50

Max call OI:26,200

Max put OI:25,500

(Ten strikes to ATM, 13 Jan expiry)

NIFTY50 crashed by 1% in Thursday’s trading session, after the US President Donald Trump backed a bill to increase the tariffs on the importers of Russian oil up to 500%. The news triggered a massive selloff in the broader markets, as midcap and smallcap stocks fell nearly 2%. NIFTY50 also closed below the psychological support level of 26,000, indicating a bearish trade setup for Friday.

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Nifty50_2026-01-09_07-23-29.png

On the technical front, the NIFTY50 closed below the crucial 20 SMA levels of 26,062 on the daily charts. Additionally, the index closed below the crucial support trendline of lower lows, adding to the bearish sentiment. The medium-term weekly charts indicate 25,700 as the next support for the NIFTY50.

jan09.png

On the options data front, the 26,200 calls witnessed heavy open interest addition, indicating a strong resistance for the index for the current weekly expiry. On the other hand, the 25,500 puts hold the highest open interest, indicating the next support for the index.

Stock Scanner

Long buildup: -

Short buildup: Jio Financial Services

Top traded futures contracts: ICICI Bank, TCS

Top traded options contracts: TCS 3,300 CE

F&O securities under ban:

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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