Nifty Next 50 (66,260.55) has been in downtrend for the past few weeks. After a sharp slide, we expect a technical pull back. While this may be short-lived, it provides potential trading opportunities. The index finds immediate supports at 65,745 and 62,520. Immediate resistance is at 67,150. Only a close above 73,230 will change negative outlook for the index.

We expect the index consolidate between 60,000 and 70,000 before taking a clear direction. In the short term, it will be volatile and hence this strategy is for traders who can understand the risk and meet higher margin commitments associated with extreme volatile conditions.

Key triggers: EU-India trade deal and upcoming Budget on the Sunday.

F&O pointers: Nifty Next 50 Jan futures is ruling at 66,347 (expiring on Tuesday) and the Feb futures at 66,394.80 against the spot close of 66,260.55. The rollover of Feb contracts indicates short positions and unwinding of long positions ahead of expiry. Interestingly, the index did not witness much activity in February contracts, despite just a day left for expiration of January contracts.

Strategy: Traders willing to take risk can buy Nifty Next 50 Feb futures. Initial stop-loss can be 65,440. Traders can aim for a target of 67,000 with trailing stop-losses. As mentioned earlier, this strategy is for traders who have high risk tolerance and risk averse traders can stay away. If the index opens sharply higher or lower, traders can stay away from the strategy.

Follow-up: Trade suggestion on TCS hit the stop-losses.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.

Published on January 24, 2026