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Below the Market Commentary (closing) for 2nd January 2026 by Bajaj Broking

Market Closing Commentary

Indian benchmark indices extended their positive trend on 2nd January, with both the Nifty 50 and Bank Nifty registering fresh all-time highs. The market strength came despite soft global cues and continued selling pressure from the FII desk, as optimism around upcoming corporate earnings and strong domestic participation lifted overall investor sentiment.

At the close, the Sensex advanced 573.41 points (0.67%) to 85,762.01, while the Nifty gained 182 points (0.70%) to end at 26,328.55, marking a strong start to the new trading year. The market rally was wide, with most sectors moving up. Realty, PSU bank, and metal stocks gained the most, showing better risk-taking by investors and hopes of improved earnings in cyclical sectors. FMCG was the only weak sector, as investors booked some profits after its recent strong performance. The broader market mirrored the benchmark rally, highlighting healthy market breadth. The Nifty Midcap and Small cap indices closed higher by 1.01% and 0.72 % respectively.

Nifty Outlook                                              

The index has decisively crossed its previous swing high, reinforcing the prevailing bullish trend. A strong bullish candle on the daily chart has pushed the index to a fresh high of 26,340, signalling scope for further upside into uncharted territory. The index continues to trade well above its key moving averages, confirming the strength of the ongoing uptrend. The near- to short-term outlook remains positive, with a buy-on-declines approach favoring the bulls as long as the index sustains above the 26,000 mark. A clear breakout above today’s high could propel the index toward 26,500 initially, followed by 26,800. However, failure to surpass this level may result in a phase of consolidation within the 26,000–26,350 range.

Bank Nifty Outlook

Bank Nifty has been displaying clear relative outperformance, scaling fresh record highs of 60,203.75 over the past few sessions. The rally has been driven primarily by sustained strength in PSU banks, along with meaningful participation from private sector banks. On the daily chart, the index formed a bullish marubozu candle, highlighting strong buying interest from the opening bell and firm control by bulls throughout the session. The index continues to trade well above its key moving averages and has also surpassed its earlier swing high, signaling potential for further record highs. On the downside, immediate support has moved up to the 59,800 level, followed by 59,500. On the upside, near-term resistance is placed around 60,500, with the next hurdle seen near 60,800.

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