The Indian stock market is poised for a mixed to positive opening on Tuesday, January 6, taking cues from gains in Asian markets. The trends on Gift Nifty indicated a positive start, with the index trading at 26,392, marking a rise of 76 points or 0.28% from the Nifty futures' previous close.
Market Recap: Profit Booking Trumps Global Positivity
In the previous session on Monday, January 5, the benchmark indices closed lower despite positive global cues. Investors chose to lock in profits in select heavyweight stocks. This cautious move was influenced by heightened geopolitical tensions following reports of a US military action in Venezuela leading to the capture of President Nicolas Maduro and his wife.
The Sensex declined by 322.39 points, or 0.38%, to settle at 85,439.62. Similarly, the Nifty 50 slipped 78 points, or 0.30%, to close at 26,250.30. The broader markets showed resilience, with the BSE Midcap index edging up 0.05% and the Smallcap index gaining 0.07%.
Technical Outlook for Sensex and Nifty 50
Sharing his technical perspective, Market Analyst Mayank Jain from Share.Market noted that after testing highs near 85,800, the Sensex failed to sustain momentum due to selling pressure in HDFC Bank and IT majors like Infosys. He identified the 85,000–85,200 zone as a critical immediate support. A breach below this could lead the index toward the 100-day Simple Moving Average (SMA) near 83,500. On the upside, the 85,800–86,000 range remains a formidable resistance zone.
From an options data (OI) standpoint, the 85,500 strike has seen increased Call buildup, turning it into a resistance ceiling. The 85,000 strike holds the highest Put concentration, suggesting traders are betting on this level to hold support.
For the Nifty 50, which opened strong and scaled a fresh all-time high of 26,373 before retreating, Aakash Shah, Research Analyst at Choice Equity Broking, offered a constructive outlook. He stated that the index breached the key support of 26,300 and closed near 26,244, indicating a short-term bearish bias. Immediate resistance is placed in the 26,400–26,450 zone, while support is seen at 26,200–26,150. The Relative Strength Index (RSI) eased to 58.09, signaling weakening momentum.
Data for the January 6 expiry shows a struggle between bulls and bears. Aggressive Call writing at the 26,300 strike makes it a stiff immediate resistance. Significant Put Open Interest remains at the 26,200 and 26,000 levels, expected to provide a strong safety net. The Put-Call Ratio (PCR) cooled slightly to 0.96, suggesting balanced sentiment.
Bank Nifty Consolidates After Record High
The Bank Nifty mirrored the benchmark, opening strong and touching a fresh all-time high of 60,437 before witnessing profit booking. It slipped below the psychological 60,000 mark to an intraday low of 59,859 but recovered later to close at 60,044.
This price action suggests a phase of consolidation within an overall bullish trend. Resistance for Bank Nifty is placed at 60,300–60,400, while support is seen at 59,700–59,800. The RSI for the banking index eased to 65.05, indicating mild cooling in momentum without major breakdown signals.
Market participants are likely to remain cautious ahead of key US labor market data and the start of India's Q3 earnings season. Analysts maintain that the broader buy-on-dips strategy remains intact as long as the Nifty holds above the 26,200 support level.
