Indian Stock Market Sees Sharp Volatility: Nifty, Sensex End Week Lower
The Indian stock market experienced significant volatility during the week of January 19 to 23, 2026, concluding with notable declines. The trading period began with intense selling pressure, which pulled the Nifty 50 index close to the 25,000 mark and dragged the Sensex below 81,500. A brief mid-week rebound provided some relief, with the Nifty recovering to approximately 25,290 and the Sensex climbing above 82,300. However, this recovery proved short-lived as renewed selling pressure emerged, ultimately pushing the Nifty back near 25,050 and the Sensex to around 81,540 by the week's end.
Drivers Behind the Market Downturn
The stock market downturn was fueled by several key factors that collectively overshadowed intermittent positive global signals, maintaining a risk-averse sentiment among investors. Persistent Foreign Institutional Investor (FII) outflows played a crucial role, alongside weak Q3 earnings trends, particularly in the IT and consumption sectors. Additionally, continued rupee weakness and lingering uncertainties related to global trade dynamics contributed to the overall negative momentum.
Stock Market Outlook: Expert Analysis from Anand Rathi
Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, characterizes the current Indian stock market sentiment as cautious to negative. He notes that the Nifty 50 index closed near a critical support level at 24,900. A decisive breakdown below this support could see the index targeting the next demand zone in the 24,500 to 24,400 range.
Nifty 50 and Bank Nifty Perspectives
Regarding the Nifty 50, Kothari observes that after last week's failed breakout and range-bound consolidation, the market witnessed a clear structural breakdown this week. The index decisively breached the 25,400 support and fell below the psychological 25,000 mark, approaching the 24,900 zone. He suggests a potential retest of 24,900 or a marginal break below it, which might complete the ongoing corrective phase. If stabilization around 24,800 does not occur, the previous base near 24,500–24,400 becomes the next major demand zone, though the likelihood of such an extended decline remains relatively low.
Kothari anticipates that once a fresh low is established, the market may enter a base-building phase, even if broader markets experience a slightly extended but likely final leg of decline. A recovery towards 25,400 could follow, with a sustainable bottom confirmed only upon a decisive move back above 25,400. He advises traders to exercise caution, avoid aggressive bottom-fishing, and await clear confirmation before taking new directional positions.
For the Bank Nifty index, Kothari highlights an escalation in selling pressure, with the index breaking below the earlier 59,000 support and forming a fresh low near 58,300. This breakdown indicates that the earlier recovery towards 60,000 failed to sustain, leading to further unwinding. At current levels, the index might drift lower towards the 57,800 zone, which emerges as the next important support area where signs of short-term stability could develop.
On the upside, any rebound is likely to face immediate resistance in the 59,000–59,600 zone, acting as a strong supply area during pullbacks. Overall, Bank Nifty remains in a cautious phase, with traders advised to stay selective, avoid aggressive long positions until stability is visible, and closely monitor price behavior around the lower support zone for clearer directional cues.
Mehul Kothari's Stock Recommendations: Three Picks Under ₹200
In terms of specific stock recommendations, Mehul Kothari has identified three shares to consider buying on Monday, all priced under ₹200. These picks are based on technical analysis and market conditions.
- IDBI Bank: Buy at ₹95, with a target of ₹105 and a stop loss at ₹88.50.
- IFCI: Buy at ₹55, with a target of ₹65 and a stop loss at ₹48.50.
- Bank of India: Buy at ₹155, with targets at ₹168 and ₹175, and a stop loss at ₹143.
Disclaimer: This content is intended for educational purposes only. The views and recommendations expressed are those of individual analysts or broking companies and do not reflect the opinions of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
