Bullish Tasuki Gap Keeps Bulls in Game as 20-DEMA Sheilds Nifty

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Nifty on Wednesday defended 26050, a key pivot where massive put writing had been seen.

By S JHA

Mumbai, January 7, 2026 — Indian markets fell for another day on Wednesday, as indices sank amid geopolitical warning bells. Despite firm gains on the US bourses, bears in India pushed the indices down. But bulls fought back, as they defended key levels on Wednesday.

Chartists described day’s action as consolidation. Nifty had sharply gained last week to eye summits. But chartists claim that Nifty’s sharp and brisk rise had left gaps that needed to be filled. The gaps are filled during consolidation per chartists.

Nifty on Wednesday defended 26050, a key pivot where massive put writing had been seen. With heavy call writing around 26300 and 26400, traders have seemingly defined the range for the 50-share index to trade for the next few days until sharp cues bring lifting tides.

“Technically, Nifty continues to hold above the breakout levels of the ‘Symmetrical Triangle’ pattern confirmed on Friday and once again successfully defended the key support of the 20-DEMA,” said Angel One in its analysis of the Indian markets shared with clients.

It further stated that “while the broader undertone remains positive, the benchmark index appears to be in a consolidation phase and may continue to trade in a range until there is some respite in heavyweight stocks.”

Delhi-based brokerage firm also advised traders to “focus on stock-specific opportunities, as the Nifty Midcap 100 index is displaying relative strength with a continuation breakout pattern, similar to a ‘Bullish Tasuki Gap’ on the daily chart.”

“From a levels perspective, 26050–26000 is seen as immediate support, while 26300–26400 remains a key resistance zone,” added the brokerage firm.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock markets)