Indian equity benchmarks, the Sensex and Nifty 50, are likely to see a muted opening on Monday, following a five-session losing streak. Investor sentiment remains fragile due to a combination of weak global market signals, persistent foreign fund selling, and caution ahead of the second-quarter earnings season.
Market Snapshot and Global Pressures
The Gift Nifty, an early indicator for the Indian market, was trading near the 25,796 mark, suggesting a nearly flat start compared to the previous Nifty futures close. This comes after a sharp sell-off on Friday, January 9, 2026. The Sensex plummeted 604.72 points, or 0.72%, to end at 83,576.24. Similarly, the Nifty 50 dropped 193.55 points, or 0.75%, closing at 25,683.30. The weekly performance was equally grim, with the Nifty shedding 2.45%.
Analysts point to renewed worries over US trade policies, continuous foreign institutional investor (FII) outflows, and a defensive posture from traders before major corporate results as the primary dampeners for market mood.
Technical Outlook: Sensex and Nifty 50
From a technical perspective, the charts paint a cautious picture. Aakash Shah, Research Analyst at Choice Equity Broking, noted that the Sensex showed weak intraday momentum with a bearish bias. He identified immediate resistance at 84,100, followed by 84,400. On the lower side, the 83,100 – 83,000 zone is a critical support and potential buying area for positional traders.
The Nifty 50 formed a bearish engulfing pattern on the weekly chart, signaling a sharp reversal. Nagaraj Shetti of HDFC Securities stated that the underlying trend is weak. A break below 25,700 could trigger a further fall towards 25,400, with immediate resistance at 25,900. Nilesh Jain of Centrum Broking highlighted that the index faced stiff resistance near its 50-day moving average (50-DMA) around 25,960, with crucial support at the 100-DMA near 25,540.
Derivative Data Signals Caution
Options data reinforces the defensive market stance. Ponmudi R, CEO of Enrich Money, pointed out that for the January 13 weekly expiry, heavy Call writing is concentrated at the 26,000 strike, making it a strong overhead resistance. The overall options setup suggests a range-bound to mildly bearish bias unless there is significant short covering above key resistance levels.
Bank Nifty in a Consolidation Phase
The banking index also ended lower on Friday, down 0.73% at 59,251.55, forming bearish candlestick patterns. Analysts expect Bank Nifty to consolidate within the 58,800 to 60,400 range. A decisive move outside this band will indicate the next directional trend.
Om Mehra from SAMCO Securities identified 59,000 – 58,750 as the immediate support zone, while 59,600–59,700 acts as a strong resistance. The near-term tone has turned cautious following rejection from higher levels.
Adding to the concerns, the India VIX, a fear gauge, surged by 16% during the week to close near 11, indicating rising market volatility and trader anxiety.
Disclaimer: The views and recommendations expressed are those of individual analysts and broking firms. Investors are advised to consult certified experts before making any investment decisions.
