Market Commentary (closing) for 08th January 2026 by Bajaj Broking
Below the Market Commentary (closing) for 08th January 2026 by Bajaj Broking
Market Closing Commentary
Indian benchmark indices ended sharply lower on January 8 as cautious sentiment prevailed amid fresh concerns over potential US tariff measures and sustained foreign investor outflows. The Nifty slipped below the 25,900 level, reflecting broad-based selling pressure across the market. The Sensex declined 780.18 points, or 0.92%, to settle at 84,180.96, while the Nifty dropped 263.90 points, or 1.01%, to close at 25,876.85.
Sectoral performance remained weak, with heavy losses seen in Metal, Oil & Gas, Power, PSU Bank, and Capital Goods stocks, each falling 2–3% as risk aversion dominated trading. Metal stocks witnessed profit booking following a retreat in global commodity prices, whereas Oil & Gas counters came under pressure due to geopolitical concerns surrounding the Venezuela–US situation. The broader market also faced selling pressure, with both midcap and small cap indices slipping 2% each
Nifty Outlook
The index formed a sizable bearish candle with a lower high and a lower low, indicating an extension of the corrective decline for the fourth consecutive session. Contrary to expectations, the index closed below the key support zone of 26,000–25,900. In the process, it also slipped below the rising trendline connecting recent swing lows and the 50-day EMA for the first time since 3 October 2025, highlighting a deterioration in short-term price structure.
Looking ahead, sustained follow-through weakness could open further downside towards the 25,700–25,600 region. This zone represents a confluence of the previous month’s low and the 100-day EMA, making it an important medium-term support area.
On the shorter-term horizon, momentum indicators suggest the market is in an oversold territory. Therefore, a technical pullback cannot be ruled out. However, for the corrective decline to pause, the index must close above the previous session’s high and decisively reclaim the 26,100 level..
Bank Nifty Outlook
Bank Nifty formed a bearish candle, marked by a lower high and a lower low, indicating a continuation of the ongoing corrective decline. Going forward, the index is expected to remain in a consolidation phase within the 59,500–60,400 range. A decisive breakout above this range or a breakdown below it will provide clarity on the next directional move. On the downside, immediate support is seen at 59,500, while the key short-term support zone lies at 59,000–58,700. This area is significant as it represents a confluence of the 50-day EMA and the previous month’s low, making it a crucial level to watch.
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