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Below the Quote on Market Wrap 07th January 2026 from Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd

"Markets ended Wednesday’s session on a subdued note, extending the ongoing corrective phase. The Nifty opened in negative territory and remained under pressure for most of the day, with only limited recovery attempts, eventually closing at the 26,140.75 level, down around 0.14%. Sectoral performance was mixed, with IT and pharma stocks showing relative resilience, while auto and realty stocks faced selling pressure. Interestingly, broader indices outperformed the benchmark and gained around 0.5% each, highlighting selective participation beyond frontline stocks.

Market sentiment continued to be shaped by mixed global cues and lingering geopolitical concerns, which kept risk appetite in check. In addition, rotational selling in select index heavyweights such as ITC, HDFC Bank and Reliance capped the upside and restrained the broader uptrend. In the absence of strong domestic triggers, trading activity remained largely stock-specific, with participants adopting a wait-and-watch approach ahead of upcoming earnings announcements and key macro developments.

The Nifty has moved closer to its first line of support, the 20-day DEMA, following the recent dip. The index is likely to find near-term support in the 26,000–26,100 zone, with a stronger base placed around 25,800. However, continued profit booking and earnings-related reactions in select heavyweights may limit the pace of any immediate recovery. Participants are advised to focus on stock-specific opportunities and use market dips to gradually accumulate quality names within outperforming sectors."

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