The Indian stock market is gearing up for a potentially turbulent Tuesday. Weak global market cues are creating uncertainty. This follows an escalation in global trade tensions. US President Donald Trump announced new tariffs on eight European countries over Greenland. This development has rattled investors worldwide.
Market Outlook for Tuesday
Trends on the Gift Nifty indicate a flat opening for the benchmark indices. The Nifty 50 and the Sensex are likely to start the day without much movement. However, volatility could increase as the trading session progresses.
On Monday, the equity market closed in negative territory. The Nifty 50 finished below the 25,600 level. It settled at 25,585.50, down 108.85 points or 0.42%. The Sensex fell 324.17 points, or 0.39%, to close at 83,246.18.
Nifty 50 Options Data Analysis
Chandan Taparia from Motilal Oswal Financial Services Ltd shared insights on Nifty options. He is the Head of Derivatives & Technicals for Wealth Management. The maximum Call Open Interest is at the 25,800 strike, followed by 25,700. The maximum Put Open Interest sits at 25,500, then 25,600.
Taparia noted active Call writing at the 25,600 and 25,650 strikes. Put writing was observed at 25,500 and 25,600. This option data points to a broad trading range between 25,200 and 26,000. The immediate range is narrower, between 25,400 and 25,800 levels.
Technical View on Nifty 50
The Nifty 50 formed a small-bodied candle on the daily chart. It had a longer lower shadow. This pattern suggests that buyers stepped in to provide support at lower price levels.
According to Taparia, if the Nifty 50 can cross and hold above 25,650, a bounce is possible. The index could then move towards 25,700 and later 25,850. On the downside, support levels are visible at 25,450 and 25,350.
Bank Nifty Performance and Outlook
The Bank Nifty index declined 203.80 points, or 0.34%, on Monday. It closed at 59,891.35. The daily chart showed an Inside bar pattern. This indicates buying at lower zones, but a lack of momentum at higher levels.
For an upward move, the Bank Nifty needs to cross and hold above the 60,000 zone. If it does, targets lie at 60,250 and 60,500. Support on the downside is seen at 59,750 and 59,500 levels.
Stocks to Consider Buying Today
Chandan Taparia has recommended three stocks for purchase on Tuesday, January 20, 2026. His picks are HCL Technologies, Federal Bank, and Hindustan Unilever (HUL).
HCL Technologies
Recommendation: Buy
Target Price: ₹1,800 per share
Stop Loss: ₹1,665
The share price of HCL Technologies has broken out from a five-week consolidation. A strong bullish candle accompanied this breakout, signaling fresh buying momentum. The stock continues to form higher highs and higher lows on the daily chart. This reflects a continuation of the existing trend. Positive traction in the IT sector further supports the bullish outlook. It increases the probability of further upside movement.
Federal Bank
Recommendation: Buy
Target Price: ₹295 per share
Stop Loss: ₹270
Federal Bank's share price has recently negated its lower top–lower bottom structure. It is now trading near its 52-week high territory. This signals a strong trend reversal. The stock is firmly placed in a strong uptrend. Momentum indicators are positively aligned. This suggests the bullish move is likely to continue in the near term.
Hindustan Unilever (HUL)
Recommendation: Buy
Target Price: ₹2,540 per share
Stop Loss: ₹2,350
HUL's share price is on the verge of a pole-and-flag breakout. This indicates potential trend continuation. The stock has witnessed strong buying from lower levels. This buying is backed by healthy volumes. HUL is trading above all key short-term moving averages. This keeps the near-term outlook positive.
Disclaimer: The views and recommendations provided are those of individual analysts or broking companies. They are not the views of Mint. Investors are advised to consult with certified experts before making any investment decisions.
