Indian equity benchmarks are expected to open on a mixed-to-positive note on Tuesday, January 6, tracking supportive cues from Asian markets, even as domestic investors remain cautious after profit booking at record levels.
Market Recap: January 5
On Monday, the market witnessed a classic sell-on-rallies session.
Sensex: Fell 322 points (−0.38%) to close at 85,439.62
Nifty 50: Declined 78 points (−0.30%) to settle at 26,250.30
The Nifty opened strong and touched a fresh all-time high of 26,373, but failed to sustain gains due to selling pressure in heavyweight stocks, particularly in banking and IT. Broader markets showed resilience, with midcap and smallcap indices ending marginally higher.
Opening Cues for January 6
GIFT Nifty: Trading at 26,392, up 76 points or 0.28%, indicating a positive start
Asian Markets: Mostly positive, led by Japan’s Nikkei and Hong Kong’s Hang Seng
Global Sentiment: Supportive, though tempered by geopolitical developments related to the US–Venezuela situation
Key Factors to Watch Today
Profit booking at record highs: Markets remain vulnerable to selling near elevated levels
Geopolitical concerns: Continued focus on developments involving the US and Venezuela
Stock-specific action: HDFC Bank may see pressure after its ADR dropped over 6% overnight
Volatility: Elevated but controlled, suggesting consolidation rather than panic
Technical Outlook
Sensex
Immediate support: 85,000–85,200
Next downside risk: 100-day SMA near 83,500 if support breaks
Resistance: 85,800–86,000
Options data:
Call writing at 85,500 (resistance)
Strong Put base at 85,000 (support)
Nifty 50
Support zone: 26,200–26,150
Key resistance: 26,300 (heavy call writing), then 26,400–26,450
RSI: Around 58, indicating cooling momentum but no major breakdown
Put-Call Ratio: 0.96, reflecting balanced sentiment
Analysts maintain that the buy-on-dips strategy remains intact as long as Nifty holds above 26,200.
Bank Nifty
Monday close: 60,044
Support: 59,700–59,800
Resistance: 60,300–60,500
Despite profit booking, the broader structure remains bullish, suggesting consolidation within an uptrend.
Market View
Overall, the Indian stock market is likely to see a cautiously positive opening, followed by range-bound and volatile trade. With indices near record highs, investors may continue to adopt a selective and level-based approach, focusing on stock-specific opportunities rather than aggressive directional bets.
