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Market Update

Nifty : 25,876.85 -263.90 (-1.01%)

Sensex : 84,180.96 -780.18 (-0.92%)

* Equity benchmark indices extended their losing streak for a fourth straight session as Sensex slipped nearly 800 points and Nifty closed below 25900 level. Investor sentiment remained cautious amid tariff-related concerns, sustained foreign fund outflows and mixed global cues. Market volatility stayed elevated, reflecting broad-based nervousness, with India VIX jumping over 6% to hover above the 10 mark.

* The Sensex declined 780 points, or 0.9%, to 84,180, while the Nifty slipped 263 points, or 1%, to trade at 25,876. Weakness was evident across the broader market, with sectoral indices such as metals, auto, IT, financials and pharma falling between 1–3%. Larsen & Toubro and BHEL major declined in engineering stocks after Reuters reported that finance ministry plans to scrap a five-year-old restriction on Chinese firms bidding for government contracts. State-run BHEL nosedived as much as 9% to close at 275. Other stocks like Larsen & Toubro, Siemens, ABB India, CG Power up to 6%

* Foreign institutional investors continued to pare their equity exposure after briefly turning marginal buyers on January 2. FIIs have sold shares worth nearly Rs.5,760 crore so far this month, following heavy outflows throughout 2025. On Wednesday alone, they offloaded equities worth Rs.1,527 crore, marking the third consecutive session of net selling. Among the global markets, overnight, US market slipped 1% and Asia market dropped over 1% as investors weighed weak US economic signals and geopolitical concerns.

Technical Outlook:

* Nifty index opened negative and cascaded throughout the session and stooped down to 25860 levels. It broke all its immediate support levels and gave in to selling pressure to close near its lower band with losses of around 260 points. It formed a bearish candle on the daily frame and is forming lower highs – lower lows from the last three sessions. Now till it holds below 25950 zones, weakness could be seen towards 25700 then 25600 zones while resistances have shifted lower to 26000 then 26150 zones.

* S&P BSE Sensex index opened on a negative note and bears took charge from the initial hour as the index dragged sharply lower towards 84100 zone. Sustained selling pressure persisted throughout the session with every minor bounce being sold into keeping bulls firmly on the back foot. Bears held a tight grip through the day resulting in a weak close below the 50 DEMA, further dampening near term sentiment. On the daily chart it formed a bearish candle and has been creating lower lows from the last four sessions, indicating that weakness may continue unless the index manages to reclaim and sustain above key hurdle levels. Now till it holds below 84400 zones weakness could be seen towards 83900 then 83600 zones while hurdles have shifted lower to 84500 then 85700 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 1.03% at 25965 levels. Positive setup seen in IDFC First Bank, ICICI Bank, SBI Life, Solar Industries and BEL while weakness in Kaynes, RVNL, ONGC, Coforge, CDSL, Reliance, Biocon, Hindpetro, Ioc , Dr Reddy, Jubiliant foodworks, Trent, CG Power, TMPV and Bharti Airtel.

* On option front, Maximum Call OI is at 26100 then 26200 strike while Maximum Put OI is at 25700 then 25500 strike. Call writing is seen at 26000 then 26100 strike while Put writing is seen at 25900 then 25700 strike. Option data suggests a broader trading range in between 25400 to 26400 zones while an immediate range between 25700 to 26100 levels.

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