New Year Market Mania Triggers Lifting Tides as Stocks Scale EMAs

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Heavy call unwinding was seen across 25,900–26,350 CE strikes in both weekly and monthly contracts, said Angel One

By S JHA

Mumbai, January 2, 2026 — Short covering was the buzzword on the street on Friday. Bears abandoned their positions. They sighted bulls charging to the street. Bears stepped aside. Indian equity markets went trending.

The new year josh sent traders high. Global cues were ignored. Adrenaline pumped. Power scrips were electrified. The current swept through the street. There were no looking back. Traders said: how’s the josh!

Chartists took close look at positions of traders. They found that call writers had seen the writing on the wall. They had closed their short positions. The cue was set for short covering.

“Technically, the daily time frame shows a distinct pattern with higher highs and higher bottoms, suggesting a potentially strong upward trend in the market,” said Angel One in a post-market note shared with clients. Immediate upside is forecasted around the 26500-26600 range in the near term, added the chartist at the brokerage firm.

“On the flip side, the previous resistance of 26200-26150 is now likely to cushion any shortcomings, while the sacrosanct support is placed at the pivot of the 26000 mark,” said the Delhi-based brokerage firm.

It further stated that “Nifty started 2026 on a strong note, surging 182 points and forming a large bullish candle on the daily chart.” “Open interest fell 0.6%, reflecting short covering that added momentum to the up move,” added the analyst.

It also noted that “heavy call unwinding was seen across 25,900–26,350 CE strikes in both weekly and monthly contracts. Market breadth improved significantly, with over 90% of Nifty 50 stocks above their 5-EMA and more than 70% above 10, 20, and 50-EMA, highlighting a broad-based rally,” added the analyst.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)