Indian Stock Market Closes with Cautious Optimism on Thursday
The Indian stock market concluded Thursday's trading session with a cautiously positive undertone, as benchmark indices staged a relief-led rebound driven by improving global sentiment. Easing trade-related fears and supportive cues from Asian markets encouraged selective risk-on positioning among investors, leading to broad-based participation across key sectors.
Broad-Based Recovery Across Market Segments
Market participants witnessed significant activity across banking, automotive, information technology, and metals sectors, with mid-cap and small-cap stocks also joining the recovery momentum. This widespread participation indicated growing investor confidence in the market's underlying strength despite ongoing challenges.
However, the overall market tone remained partially restrained by sustained weakness in the Indian rupee, which reflected continued dollar demand from importers and corporations. The currency's depreciation created some headwinds for market sentiment, though investors found comfort in the Reserve Bank of India's measured approach to currency management.
Expert Analysis: Nifty 50 and Bank Nifty Outlook
Ponmudi R, CEO of Enrich Money, provided detailed technical analysis of the Nifty 50 index, stating, "The Nifty 50 index continues to remain in a consolidation phase with a mild positive bias after a volatile intraday session. As long as the Nifty 50 index holds above 25,120, the broader setup remains stable with scope for a gradual push toward 25,400–25,500."
He further elaborated, "A decisive close above 25,600 will be required to confirm a bullish breakout and shift momentum firmly in favour of the bulls. Failure to defend 25,120 may reopen downside pressure. Overall, the outlook remains range-bound to cautiously positive, favouring a buy-on-dips near supports and selling near resistance until a clear directional breakout emerges."
Regarding the Bank Nifty index, the Enrich Money expert noted, "The Bank Nifty ended the session in a cautious consolidation mode, with repeated selling pressure emerging in the 59,400–59,600 resistance band, which continues to cap upside attempts. On the downside, 58,850–58,800 acted as immediate support, while a stronger demand base is placed near 58,500."
He added, "A sustained breakout above 59,600 is required to revive bullish momentum and unlock higher targets, while a decisive breakdown below 58,700 could invite fresh selling pressure toward lower support zones. Until then, Bank Nifty is likely to remain range-bound with two-sided intraday opportunities."
Precious Metals and Currency Market Analysis
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, commented on gold rate outlook, stating, "Focus will shift to the US Fed meeting at the end of January and the Union Budget 2026 on February 1, both of which could influence volatility and currency movement. Gold price is expected to remain highly volatile in a broad range of ₹1,45,000 per 10 gm to ₹1,58,000 per 10 gm in the coming week."
On silver rate outlook, Ponmudi R of Enrich Money said, "MCX Silver rate remains entrenched in a strong bullish channel, with consistent buying emerging on dips. The metal continues to outperform as a high-beta precious metal play. Sustained strength above ₹3,15,000 keeps the upside bias intact, with breakout targets placed at ₹3,35,000 to ₹3,50,000 and beyond."
He continued, "On corrective declines, a move below ₹3,00,000 could lead to a test of the ₹2,90,000 to ₹2,80,000 zone, where fresh accumulation is likely to emerge."
Regarding the Indian rupee's performance against the US dollar, Jateen Trivedi of LKP Securities observed, "Rupee later recovered marginally with gains of 0.08 paise to 91.57, supported by a volatile yet positive session in domestic equities. Comments from the US President at Davos, indicating a constructive trade outlook with India and a softer tone on Greenland, provided some relief to sentiment. However, volatility remains elevated, with the rupee likely to trade in the 91.00–92.00 range."
Stock Recommendations from Market Experts
Regarding stocks to buy today, stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended eight intraday stocks for Thursday's trading session. Their recommendations included:
- SAIL
- JK Tyre
- DLF
- Eternal
- HAL
Sumeet Bagadia provided specific stock recommendations for Thursday, offering detailed technical analysis and entry-exit levels for each suggested scrip. These recommendations came amid the cautiously positive market environment, with experts identifying specific opportunities within the broader recovery trend.
The market's performance reflected a delicate balance between improving global sentiment and domestic currency concerns, with investors carefully navigating the range-bound conditions while awaiting clearer directional cues from both domestic and international developments.
