Indian equity markets are bracing for a tentative opening on Thursday, January 8, as investors weigh mixed signals from global peers and persistent geopolitical headwinds. Early indications from the Gift Nifty futures, trading around 26,184—a dip of 42 points or 0.16% from the previous close—point towards a subdued start for the domestic session.
Market Sentiment Remains Guarded
Analysts attribute the cautious mood to a confluence of factors. Ponmudi R, CEO of Enrich Money, highlighted that while key indices like the Nifty and Bank Nifty are holding crucial support levels, they are simultaneously facing significant overhead resistance. This technical setup, combined with elevated geopolitical tensions, renewed concerns over tariffs, and continued outflows from foreign portfolio investors (FPIs), is likely to keep the broader market in a flat to range-bound zone, mirroring the mixed cues from international markets.
This sentiment follows a third straight day of losses for the benchmarks on Wednesday, January 7. The Sensex declined by 102 points, or 0.12%, to settle at 84,961.14. Similarly, the Nifty 50 slipped 38 points, or 0.14%, closing at 26,140.75. In a contrasting trend, broader markets showed resilience, with the BSE Midcap and Smallcap indices gaining 0.47% and 0.12%, respectively.
Technical Outlook for Key Indices
Sensex Prediction: According to Aakash Shah, Research Analyst at Choice Equity Broking, the Sensex exhibited intraday volatility on Wednesday, signaling consolidation after its recent upward move. The index encountered selling pressure at higher levels, leading to choppy trading. Shah notes that immediate resistance is now placed in the 85,400–85,500 band, while support lies around 84,400–84,500. A more substantial base is seen near 84,200, which could serve as an accumulation zone for positional traders. Sectorally, IT and Consumer Durables saw selective buying, while Auto and Infrastructure stocks lagged.
Nifty 50 Prediction: Ponmudi R observes that the recent profit-booking seems to have stabilized, with the Nifty forming a neutral Doji candle—a sign of indecision. The index found a base near 26,050, aligning with its 20-day Exponential Moving Average (EMA) around 26,086, and staged a rebound. The level of 26,200 now acts as immediate resistance. A sustained move above this could target 26,300–26,400. Conversely, a decisive break below the 26,050-26,000 support zone might trigger a correction towards 25,900–25,800.
Bank Nifty Analysis: The banking index closed near the 60,000 mark, forming a hammer candle that suggests buying at lower levels. Strong demand emerged in the 59,700–59,800 support area. However, supply pressure at higher levels capped gains. A breakout above 60,150 is crucial for a trend recovery, potentially opening targets up to 60,500. On the flip side, a fall below 59,800 could lead to weakness towards 59,600.
Consolidation Phase Likely to Continue
The overarching view among experts is that the market is likely to remain in a consolidation phase in the near term. The absence of a clear directional catalyst, coupled with global uncertainties, is fostering a wait-and-watch approach. Investors are advised to monitor the mentioned key support and resistance levels for clues on the next sustained move.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of individual analysts and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
