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Market Update

Nifty : 26,146.55 +16.95 (+0.06%)

Sensex : 85,188.60 -32.00 (-0.04%)

* Equity benchmark Nifty started the first trading session of 2026 on a positive note, closing above the 26,100 mark, supported by sustained buying from domestic institutional investors, strong December auto sales data, higher GST collections for the month of December, and gains in select blue-chip stocks such as Bajaj Auto, L&T, NTPC, and M&M.

* Better-than-expected December auto sales helped Nifty edge marginally higher, even as the Nifty FMCG Index declined over 3% due to a sharp fall in cigarette major ITC. Market movement remained largely range-bound as most global markets were closed for the New Year holiday.

* Nifty added 16 points to close at 26,146, while the Nifty 500 advance-decline ratio stood at 1:1, indicating stock-specific action. The Nifty Auto Index climbed more than 1%, led by gains in Ashok Leyland, Maruti Suzuki, Eicher Motors, and M&M.

* Meanwhile, FMCG heavyweight ITC fell 9% to close at Rs.363 after the government announced a new excise duty on cigarettes, making it the top loser on both the Sensex and Nifty. The finance ministry stated that an excise duty ranging from Rs.2,050 to Rs.8,500 per 1,000 cigarette sticks—based on length—will be levied in addition to the existing 40% GST, effective February 1.

Technical Outlook:

* Nifty index opened positive and inched towards 26200 zones but failed to hold momentum and moved in a narrow range of around 80 points for the rest of the day. The index moved in a rather lackluster manner with subdued moves on either sides. It formed a small bodied candle on the daily frame and has started to make higher highs – higher lows from the last two sessions. Now it has to hold above 26100 zones for an up move towards 26250 and 26325 zones while supports can be seen at 26050 then 25950 zones.

* S&P BSE Sensex index opened on a positive note but was unable to sustain the momentum and resulted in a range bound price action. Despite this the broader trend remained constructive as the index continued to hold above its crucial support zone near the 85000 level. On the daily chart a small bodied candle with wicks on both sides was formed suggesting buying interest at lower levels while upside gains remained restricted. Now it has to hold above 85000 zones for an up move towards 85500 then 85700 zones while on the downside supports are seen at 84800 then 84600 levels.

Derivative Outlook:

* Nifty future closed negative with losses of 0.02% at 26291 levels. Positive setup seen in PNB Housing, JSW Energy, APL Apollo, Ashok Leyland, Shriram Finance, TVS Motor, M&M, AB Capital, SAIL and LT while weakness in Kaynes, Bajaj Finance, Bandhan Bank , Mazdock, IEX, Delhivery, INOX Wind, Cipla, Jubilant Foodworks and Max Healthcare.

* On option front, Maximum Call OI is at 26200 then 26300 strike while Maximum Put OI is at 26000 then 26100 strike. Call writing is seen at 26200 then 26250 strike while Put writing is seen at 26150 then 26100 strike. Option data suggests a broader trading range in between 25700 to 26500 zones while an immediate range between 26000 to 26300 levels.

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