All Time High on Nifty - What lies ahead? - Technical Analysis of financial markets for the week ended Jan 2, 2026

After a very choppy December with numerous false signals, Nifty finally broke out of a range last Friday to close at an All Time High generating a Triple Top buy signal on the weekly chart.

Weekly chart of Nifty showing a strong triple top breakout

The broader market has performed in tandem. Consider below:

✅ Banknifty has also closed at a new ATH last Friday. The weekly candle is a long Bullish Engulfing that engulfs the prior 5 candles , a strong buy.

Weekly chart of Banknifty showing a Bullish Engulfing break out to an ATH

✅ Similarly, Midcap 100 Index has closed at a new ATH last Friday, breaking out of a narrow 8 week range, a buy signal.

Weekly chart of Midcap 100 showing a breakout from a narrow range to an ATH

✅ Smallcap 100 Index has been rising after a making a strong double bottom 3 weeks back on the weekly chart with the latest weekly candle an Outside Green, another emphatic buy signal.

Weekly chart of Smallcap 100 showing an Outside Green candle following a Double Bottom

✅ Other indices, with the exception of FMCG and IT, have either broken out to an ATH or given fresh buy signals on their respective weekly charts.

As is clear from above, the bullishness is broad based. Financials are leading from the front which is the hallmark of a healthy bull market that is about to embark on a fresh northward wave.

How are the global markets stacking up?

👉 DJIA made an ATH on December 12th of 2025 and has been hovering in a range for the past 3 weeks ever since, testing prior support. Last Friday, DJIA formed a Bullish Engulfing pattern with its low forming a double bottom, a strong buy signal .

Daily chart of DJIA showing a Bullish Engulfing pattern last Friday at a Double Bottom

However, Nasdaq formed a bearish pattern on the same day so the outlook in the US market remains mixed.

👉 The European markets are bullish with FTSE and Stoxx making a new ATH last Friday, whereas CAC and DAX remain rangebound near the top with a bullish bias.

👉 The Asian markets are mostly rangebound near the top with the exception of Korea and Indonesia, both of which recorded a new ATH close last Friday.

Overall, Indian markets look well placed for a fresh upward move, supported by broad participation and leadership from financial stocks. This strength continues despite the rupee hovering near record lows against the dollar, suggesting that the market is focused more on the structural growth story and the forthcoming earnings season rather than currency noise.

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