Indian equity benchmarks are set to begin the first trading session of 2026 on a firm footing, with the Sensex and Nifty 50 likely to open at fresh record levels amid light volumes as most global markets remain shut for the New Year holiday.
Early cues from Gift Nifty point to a mildly positive start. The index was trading near 26,341, marking a gain of about 66 points or 0.25% over the previous close of Nifty futures, indicating steady sentiment at the open.
In the final session of 2025, domestic equities witnessed broad-based buying, driven largely by short covering and optimism surrounding the outlook for the year ahead. Expectations of earnings growth, progress on an India–US trade agreement, and hopes of foreign investor participation returning helped markets recover lost ground.
The Sensex climbed 546 points (0.64%) to 85,220.60, while the Nifty 50 advanced 191 points (0.74%) to close at 26,129.60.
Going forward, analysts expect range-bound trade with stock-specific action, as investors remain cautious ahead of the December-quarter earnings season and continue to monitor geopolitical developments.
Sensex outlook
According to market experts, the Sensex’s technical structure remains supportive. Shrikant Chouhan of Kotak Securities noted that the index has formed a reversal pattern on daily charts, backed by a strong bullish candle. He sees 84,800–85,000 as immediate support, with upside potential toward 85,800–86,100, while a decisive break below 84,800 could weaken the trend.
Amruta Shinde of Choice Equity Broking echoed this view, highlighting accumulation on declines. She identified 84,700–84,800 as support and 85,700–85,900 as resistance, advocating a buy-on-dips strategy as long as supports hold.
Nifty 50 outlook
The Nifty is once again testing the upper end of its consolidation range near 26,200. Ajit Mishra of Religare Broking said a decisive breakout above this zone could trigger the next leg of the rally, while failure may invite profit-taking. He advised a cautious, sector-focused approach, favouring banking, auto, and metal stocks.
