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Below the Market Commentary (closing) for 07th January 2026 by Bajaj Broking

Market Closing Commentary

Indian equity markets ended lower for the third consecutive session on January 7, as persistent selling and cautious sentiment kept investors on the sidelines. Rising geopolitical tensions and renewed tariff concerns further weighed on risk appetite. At the close, the Sensex slipped 102.20 points, or 0.12 percent, to 84,961.14, while the Nifty declined 37.95 points, or 0.14 percent, to settle at 26,140.75. On the sectoral front, consumer durables, IT, and pharmaceutical stocks led the gains, rising between 0.5 and 1.85 percent. Meanwhile, auto, oil & gas, realty, and telecom stocks witnessed mild selling pressure, falling in the range of 0.5–0.8 percent. Broader market outperformed with the midcap gaining 0.45 percent, while the small-cap index ended higher by 0.39 percent.

Nifty Outlook                                              

The index has formed a doji candle with a lower high and a lower low signalling extension of the consolidation with corrective bias for the third session in a row after last week strong up move. We believe overall structure remain positive and the current breather should be used to accumulate quality large and mid-cap stocks from short term perspective. Nifty has key support around 26,000-25,900 being the confluence of the 50 days EMA and the rising demand line joining the last four months lows.

In the coming sessions index is likely to extend consolidation in the range of 26,000-26,370. Within the consolidation a move above Wednesday high (26187) will open upside towards the upper band of the range placed around 26350 levels. Overall, we expect the index to hold above the support area and gradually head higher towards 26,500 initially followed by 26,800-26,900 levels from a short-term perspective.

Bank Nifty Outlook

Bank Nifty formed a small bear candle with a long lower shadow signalling consolidation amid stock specific action around the all-time high. Going ahead index to consolidate in the range of 59,500-60,400 thus forming a higher base for the next leg of up move. We expect the index to gradually head higher towards 61,400 levels from a short-term perspective being the measuring implication of the recent range (60,100-58800). On the downside, immediate support is placed at 59,500 levels while key short-term support is placed at 59,000-58800 levels sustaining above the same will keep the overall bias positive.

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