The Indian stock market ushered in the new year 2026 with a subdued and mixed trading session on Thursday, January 1. The benchmark indices struggled for a clear direction amid thin volumes and a lack of fresh domestic or global triggers, closing with marginal changes.
Market Performance and Key Levels
The Nifty 50 index managed to close slightly in the green, gaining 0.06% or 16.95 points to settle at 26,146.55 points. This was up from its previous close of 26,129.60 points. In contrast, the BSE Sensex ended the day with a minor loss, dipping 0.04% or 32 points to close at 85,188.60 points compared to 85,220.60 points at the last session.
Vinod Nair, Head of Research at Geojit Investments Ltd, attributed the range-bound activity to thin trading volumes and continued selling by foreign institutional investors (FIIs). He noted that global holidays contributed to the muted activity. Looking ahead, Nair highlighted that Q3 earnings, expectations from the upcoming budget, and global developments like the India-US trade deal and potential Federal Reserve actions will be key drivers for market direction in the coming days, with earnings growth remaining a central theme for 2026.
Technical analysts from Bajaj Broking provided specific levels to watch. They expect the Nifty 50 to potentially move higher towards a key resistance zone between 26,250 and 26,350 points, where some consolidation could occur. On the lower side, 26,000 points is identified as an immediate and crucial support level for the index.
Commodities and Currency Movements
In the commodities market, precious metals saw a slight decline. According to Multi-Commodity Exchange (MCX) data, gold futures for February 2026 delivery dropped by 0.08%, or ₹114, to ₹135,690 per 10 grams as of 5:30 PM IST. Silver futures followed suit, easing 0.03% or ₹73 to settle at ₹235,800 per kilogram.
Ponmudi R, CEO of Enrich Money, commented on the gold outlook, stating that the trend of higher highs and higher lows remains intact. He noted that domestic prices are stable, supported by a steady rupee. A decisive move above ₹1,35,700 could open the path towards ₹1,36,000-1,36,500, with immediate support at ₹1,34,500. For silver, he emphasized its strong long-term potential from both safe-haven and industrial demand, with near-term upside potential towards ₹2,37,000-2,38,000.
The Indian Rupee (INR) weakened against the US Dollar (USD) in thin trading. Dilip Parmar, Senior Research Analyst at HDFC Securities, explained that the lack of major catalysts and thin liquidity due to the New Year holiday in major forex markets pressured the rupee. He expects the USDINR pair to trade in a near-term range, finding support at 89.40 and facing resistance at 90.26.
Expert Stock Recommendations for Friday
Several market analysts have released their technical stock picks for Friday, January 2, 2026, based on chart patterns and momentum indicators.
Sumeet Bagadia of Choice Broking recommended two stocks:
Indus Towers Ltd (INDUSTOWER): Buy at ₹436, target ₹468, stop loss ₹420. The stock is in a strong bullish trend, trading above all key moving averages and recently hitting a 52-week high.
JK Tyre & Industries Ltd (JKTYRE): Buy at ₹517, target ₹551, stop loss ₹500. The stock has broken out from consolidation to reach 52-week highs, supported by rising volumes.
Ganesh Dongre of Anand Rathi suggested three stocks:
CG Power and Industrial Solutions Ltd (CGPOWER): Buy at ₹639, target ₹660, stop loss ₹628. A bullish reversal pattern is visible.
Steel Authority of India Ltd (SAIL): Buy at ₹149, target ₹158, stop loss ₹142. The stock shows reversal action at the ₹149 level.
Sun Pharmaceutical Industries Ltd (SUNPHARMA): Buy at ₹1,725, target ₹1,770, stop loss ₹1,700. The stock exhibits a strong bullish pattern with support at ₹1,700.
Shiju Koothupalakkal of Prabhudas Lilladher also recommended three stocks:
Shakti Pumps India Ltd (SHAKTIPUMP): Buy at ₹739.30, target ₹777, stop loss ₹720. The stock has revived after consolidation with rising volume.
Fortis Healthcare Ltd (FORTIS): Buy at ₹900, target ₹955, stop loss ₹880. A higher low formation indicates a revival from support.
Manappuram Finance Ltd (MANAPPURAM): Buy at ₹314, target ₹335, stop loss ₹307. The stock has gained strength after a period of consolidation.
Disclaimer: The views and recommendations above are from individual analysts or broking firms. They are for educational purposes only. Investors are strongly advised to consult certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
