Indian stock markets are expected to open under pressure on Wednesday, January 7, 2026, as GIFT Nifty trades lower, indicating a weak start for benchmark indices. This comes despite continued strength in US equities, where Wall Street extended gains for the third consecutive session in 2026.
Market Setup: Key Levels to Watch
The Nifty 50 ended the previous session lower but successfully defended the 26,150 level multiple times, making it a crucial near-term support. Analysts note heavy Put writing at 26,150, reinforcing its importance.
The 26,250–26,300 zone remains a congestion area, and a decisive breakout above this range could open the door for further upside.
Meanwhile, Reliance Industries and HDFC Bank remain key stocks to watch after their underperformance weighed on the index in the last session. Strength in ICICI Bank and other private lenders helped Bank Nifty stay above the 60,000 mark, cushioning broader market declines.
Global Cues
US markets hit fresh record highs overnight, with the Dow Jones closing above 49,000 for the first time.
Commodity markets saw sharp moves, with Brent crude down over 2%, while gold and silver continued their rally, silver hitting a fresh record.
Asian cues remain mixed, adding to cautious sentiment at the open.
Stocks in Focus Today
Kalyan Jewellers (Q3 Business Update):
India operations revenue growth at ~42% YoY
Same-store sales growth at ~27%
International revenue up ~36% YoY
Middle East business up ~28%
Candere revenue surged ~147% YoY
Store expansion continued with new launches in India and the UK
Other stocks to track:
Titan, Godrej Consumer Products, Tata Capital, Meesho, IEX, and select metal stocks amid commodity price movements.
Brokerage Calls & Commentary
Jefferies on Reliance Industries: Buy; sees tariff hikes, potential Jio listing by mid-2026, and strong EBITDA growth outlook
Nomura on IDFC First Bank: Initiated Buy, citing improving profitability, strong CASA mix, and long-term growth visibility
CLSA on Jubilant FoodWorks: Q3 sales slightly below estimates, with Domino’s India LFL growth at 5%
Nuvama on Oswal Pumps: Initiated Buy, highlighting solar-agriculture integration opportunity
Outlook
While global cues remain supportive, domestic markets continue to trade in a range-bound and stock-specific manner. Sustaining above 26,150 on the Nifty will be critical to avoid deeper cuts, while a breakout above 26,300 could revive bullish momentum.
Investors are advised to remain cautious, track heavyweight stocks closely, and focus on earnings-driven opportunities as Q3 business updates continue to flow.
