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* Equity benchmark Nifty ended at record-high levels around 26,300 amid broad-based buying across the market. Sentiment remained positive supported by better-thanexpected December auto sales, resilient GST collections despite recent rate cuts, and strong quarterly business updates from mid-sized PSU banks such as Indian Bank. Fresh buying interest in heavyweights including Coal India, L&T, NTPC, Hindalco, Maruti, Reliance Industries and Hindustan Unilever helped Nifty advance 182 points or 0.7% to close at 26,328. The Nifty 500 advance–decline ratio stood at a healthy 4:1., indicating widespread participation.

* Banking stocks extended their rally for the fourth consecutive session on Friday, January 02, as investor confidence improved following December quarter updates from select lenders, steady credit growth and expectations of a strong Q3FY26 performance. Sectorally, Nifty Auto, Metal and Realty emerged as key gainers.

* Nifty Auto gained a 1% after reporting strong monthly sales numbers, with stocks such as Ashok Leyland, Maruti Suzuki, Hero MotoCorp and TVS Motor rising 1–2%. Nifty Metal climbed 1.5% on the back of higher global metal prices, better-than-expected China December PMI data and the government’s decision to impose a three-year safeguard duty on select steel products. Stocks including National Aluminium, Hindustan Copper, Hindalco Industries, Hindustan Zinc and Vedanta advanced 2–5%.

* Nifty Realty rose 1.5% after reports indicated that Mumbai-based real estate registrations touched a 14-year high in 2025, driven by strong demand for ?1–2 crore homes. Stocks such as Anant Raj, Godrej Properties, Oberoi Realty and Phoenix Mills gained between 2–5%.

* Among the global markets, Asian markets witnessed mixed trend while European stocks began the new year at all-time highs, tracking gains across global equities on persisting optimism around economic growth, while miners rallied on higher commodity prices.

Technical Outlook:

* Nifty index opened positive and sky rocketed right from the start of the session and touched a fresh all time high of 26340 levels. Surge in buying with participation across board helped the index stay afloat at higher zones and it closed at its higher band with gains of around 180 points. It formed a bullish candle on the daily frame and is making higher highs – higher lows from the last three sessions. It formed a bullish candle on the weekly frame and gave the highest ever close. Now it has to hold above 26250 zones for an up move towards 26500 and 26600 zones while supports can be seen at 26200 then 25100 zones.

* S&P BSE Sensex index opened on a strong note and traded in a positive territory throughout the session. Buying interest remained healthy for every minor intraday pullbacks which highlights sustained bullish sentiment. Bulls remained in control for the entire session and the index closed near its higher zones. On the daily chart the formation of a bullish candle signals the continuation of positive momentum. It formed a bullish candle on the weekly frame and recouped all its losses of the previous week. Now it has to hold above 85500 zones for an up move towards 86000 then 86200 zones while on the downside supports are seen at 85400 then 85200 levels.

Derivative Outlook:

* Nifty future closed positive with gains of 0.71% at 26478 levels. Positive setup seen in National Aluminium, IIFL, Paytm, Hindalco, Ashok Leyland, Indian Bank, Vedanta, Hindustan Zinc, PNB Housing, Coal India, JSW Energy and AU Bank while weakness in HAL, Mazdock, Bandhan Bank , Indigo, Kaynes, ITC, PB Fintech and Coforge.

* On option front, Maximum Call OI is at 26300 then 26500 strike while Maximum Put OI is at 26200 then 26300 strike. Call writing is seen at 26300 then 26500 strike while Put writing is seen at 26300 then 26500 strike. Option data suggests a broader trading range in between 25800 to 26700 zones while an immediate range between 26100 to 26500 levels.

* NLC India’s - Company announced that it has transferred seven renewable energy assets to NLC India Renewable Limited, a wholly-owned subsidiary. The transfer came into effect on Thursday. The transfer has sparked a buying interest for the stock as investors anticipated the value unlocking of the initial public offer (IPO) of NLC India Renewable Limited, scheduled for next financial year. NLC India is planning to raise ?4,000 crore through the initial public offer (IPO), as per media reports.

* UCO Bank business update - Company’s total deposits rose 10.71% YoY, total advances rose 16.27% and total business expanded 13.29% in Q3FY26.

* NTPC - Company is exploring multiple international collaborations in the area of technology and fuel to push its nuclear ambitions to diversify energy generation.

* Zodiac Energy Signs Pact to Install Solar Power Plant in Gujarat - Company has entered into an agreement with Amanta Healthcare to install a solar power plant. The pact entails the installation of a solar power plant of 10.8 MWp in the Baroda village of the Indian state of Gujarat, for the generation of electricity for captive consumption.

* Coal India Allows Direct Foreign Participation in E-Auction - Company has allowed foreign buyers to directly participate in electronic auctions for the commodity starting Jan. 1. Consumers located in the neighboring countries such as Bangladesh, Bhutan and Nepal, who wish to import coal from India.

* Bajaj Auto - December monthly sales reported at 369809 units (up 14% YoY).

* HSBC India December Manufacturing PMI fell to 2-year Low - HSBC India Manufacturing PMI for the month of December reported at 55 vs 56 in the previous month. • Apollo Micro Systems successfully bids for defence order of Rs 25.78 cr. Apollo Micro Systems has been declared lowest bidder by Defence Public Sector Undertaking, for orders worth Rs 25.78 crore.

Global Market Update

* European Market - European stocks began the new year at all-time highs, tracking gains across global equities on persisting optimism around economic growth, while miners rallied on higher commodity prices.UK, France and Germany Index gained 0.5% each.

* Asian Market - Asian equities advanced, led by gains in tech-heavy markets such as Taiwan and South Korea, as most regional markets reopened after a holiday. Hong Kong stocks also moved higher.

* US Data - Manufacturing PMI, PCE and Personal Spending.

* Commodity - Brent Crude - Oil slipped on the first trading day of 2026 as expectations for a swelling supply surplus offset geopolitical risks to production in several OPEC+ nations. Brent crude futures traded below $61 a barrel.

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