Daily Market Outlook 06th January 2026 by FundsIndia
Positive Opening Seen For Nifty Today
Trends in the GIFT Nifty index futures for January delivery, which was trading at 26,400 at 7:30 am, indicates a positive opening for Nifty today.
Nifty Technical Outlook
On Monday, the Nifty opened flat but slipped below the 26,300 mark by the close. The index initially attempted to hold above 26,300 but later faced selling pressure, led by IT and Financial stocks, as heavyweight names such as Infosys, HDFC Bank, and Reliance Industries declined. On the positive side, FMCG stocks ended mostly higher following Q3 business updates, with Nestle India gaining around 3%. Auto stocks remained strong after December sales data, with Eicher Motors and Maruti Suzuki hitting record highs. Sectorally, Realty and Defence emerged as top gainers, while IT and Oil & Gas stocks underperformed, dragging the index lower. The Nifty dropped 78.25 points closing at 26,250.30. The Nifty formed a bearish candlestick pattern on the daily chart, but we expect the buying momentum to continue for the day. The volatility index IndiaVIX has closed below 12 and we expect the volatility to remain low in the short term. The Nifty short-term trend remains bullish and the trend will turn bearish only below 26,000 levels. The 9-day simple moving average is placed at 26,122.
Domestic & Global Indices
U.S. stocks traded mostly higher on Monday, rebounding from the holiday-shortened slump, with the Dow Jones closing at a record high. Rising geopolitical risk pushed crude oil prices sharply higher, boosting energy and oil service stocks across the board. The Dow index moved up by 594 points to close at 48,977.18 and the S&P 500 index moved up by 43 points to close at 6,902.05.
Derivatives Watch
* Based on Open Interest in Futures, FII’s have decreased their long position by 152 contracts and have decreased their short position by 2375 contracts. FII's are net bullish by 2223 contracts.
* Based on Open Interest in Options, FII's were net bearish by 125319 contracts. In Nifty, the highest PUT OI was seen at 26200 and the highest CALL Open Interest was seen at 26300 strike.
* Based on Open Interest, we are bullish on Sammaan Capital, PGEL, Delhivery, Bajaj Holdings, Nestle India, Union Bank, Shree Cements, BDL, IIFL and Lodha. We are bearish on Coal India, KEI, Persistent, Dalmia Bharat, Glenmark, Premier Energies, Waaree Energies, Swiggy, Kfin Technologies and 360 One.
Economy & Stocks to Watch
* India is likely to post real gross domestic product (GDP) growth of over 7% and nominal growth of around 10%, even as policy support gradually fades, according to Samiran Chakraborty, Chief Economist at Citi India. Chakraborty said the scale of fiscal and monetary stimulus seen earlier may not continue, but India’s growth outlook remains stronger than many estimates. “We think fiscal year 2025-26 (FY26) would still be an above 7% real GDP and marginally above 10% nominal GDP growth,” he said, adding that global headwinds are easing and a tariff deal could support growth. On inflation, Citi expects an average of about 3.8% for the year, which leaves some room for further policy easing.
* Jaguar Land Rover (JLR), a wholly-owned subsidiary of Tata Motors Passenger Vehicles Ltd, reported a sharp decline in wholesale and retail sales for Q3 FY26, largely due to a cyber incident earlier in the quarter and planned wind down of legacy Jaguar models ahead of new launches. Wholesale volumes for the three months ended December 31, 2025, stood at 59,200 units (excluding the Chery JLR China JV), down 43.3% year-on-year and 10.6% sequentially from Q2 FY26, stated the exchange filing. All major markets reported declines, with North America down 64.4%, Europe 47.6%, China 46%, and the UK marginally down 0.9%.
* Kotak Mahindra Bank Ltd on Monday (January 5) reported growth in advances and deposits for the quarter ended December 31, 2025, according to a regulatory filing dated January 5, 2026. Net advances at the end of the period stood at Rs.4,80,229 crore as of December 31, 2025, registering a year-on-year growth of 16.0% compared with Rs.4,13,839 crore as of December 31, 2024. On a quarter-on-quarter basis, net advances increased 3.8% from Rs.4,62,688 crore as of September 30, 2025. Average net advances for the quarter rose 16.2% year-on-year to Rs.4,65,879 crore, and were higher by 4.0% sequentially.
* Mahindra has premiered the XUV 7XO, positioning the new SUV as a technology-led offering aimed at redefining the premium end of the domestic market. Priced from Rs.13.66 lakh (ex-showroom), the XUV 7XO is being introduced as a trendsetter that builds on the legacy of the XUV700 while pushing boundaries in in-vehicle technology and driving experience. These include the world’s first DAVINCI suspension system, India’s first internal combustion engine SUV with a coast-to-coast triple screen across all variants, and the country’s first ICE Software Defined Vehicle.
* Trent Ltd. on Monday, January 5, reported 17% year-on-year growth in revenue to Rs.5,220 crore for the third quarter of the current financial year. The standalone revenue from the sale of products, excluding GST, for the same quarter last year stands at Rs.4,466 crore. The growth holds for the nine-month period ended December 31 with revenue climbing 18% to reach Rs.14,604 crore, according to a regulatory exchange filing. The company had earlier said at its analyst meet that it believes a 25% revenue CAGR is sustainable. These were supported by an increase in the footprint of its retail brands Westside and Zudio.
* L&T Finance on Monday announced a strong business update for the December quarter, reflecting continued traction in its retail-focused strategy. Retail disbursements for Q3 FY26 are estimated at Rs.22,690 crore, marking a sharp 49% rise from Rs.15,210 crore in the year-ago period. The company’s retail loan book expanded to an estimated Rs.1.11 lakh crore as of December 31, 2025, registering a year-on-year growth of about 21% from Rs.92,224 crore. Growth was broad-based across rural, urban, SME and farmer finance segments, according to the company’s regulatory filing.
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