The Indian stock market is likely to open mixed to mildly positive on Tuesday, January 6, as investors balance firm global cues with lingering geopolitical worries and near-term profit booking.
On Monday, benchmarks slipped despite a strong start. The Sensex fell 322 points, or 0.38%, to close at 85,439.62, while the Nifty 50 dropped 78 points, or 0.30%, ending the session at 26,250.30. Broader markets, however, held their ground, with midcap and smallcap indices closing slightly higher.
Early Signals: Gift Nifty Points to Positive Start
Trends on Gift Nifty suggest a stable opening for Dalal Street. Gift Nifty was trading around 26,392, up 76 points or 0.28% from the previous Nifty futures close, tracking mild gains across Asian markets in early trade.
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What Dragged Markets on Monday?
Monday’s decline came after benchmarks briefly touched fresh record highs before reversing course. Investors booked profits in heavyweight stocks, particularly in banking and IT, even as global cues remained supportive.
Sentiment was also weighed down by heightened geopolitical tension following reports of US military action in Venezuela and the capture of President Nicolás Maduro and his wife. While the direct market impact remains limited, such developments tend to make investors cautious in the short term.
Sensex Outlook: Key Levels to Watch
Technically, the Sensex failed to hold above the 85,800 zone, which now acts as a strong supply area.
According to market analysts, 85,000–85,200 is the immediate support range. A decisive break below this could drag the index closer to its 100-day moving average near 83,500. On the upside, 85,800–86,000 remains a stiff resistance band.
From an options perspective, fresh call writing at the 85,500 strike suggests limited upside for now, while heavy put concentration at 85,000 indicates that traders are betting on this level to hold in the near term.
Nifty 50: Consolidation With a Bearish Bias
The Nifty 50 opened strong on Monday and hit a fresh all-time high of 26,373 before selling pressure pushed it down to an intraday low of 26,210.
Technically, the index slipped below the key 26,300 mark and closed near 26,250, hinting at short-term weakness. Immediate resistance is placed in the 26,400–26,450 zone, while supports lie at 26,200 and 26,150.
Options data shows aggressive call writing at 26,300, making it a crucial resistance level. On the downside, strong put open interest at 26,200 and 26,000 provides a safety net. The put-call ratio around 0.96 suggests a balanced, wait-and-watch sentiment.
Despite the near-term pressure, analysts believe the broader buy-on-dips strategy remains intact as long as the Nifty holds above 26,200.
Bank Nifty: Bullish Trend, Short-Term Consolidation
The Bank Nifty mirrored the broader market’s moves. It touched a fresh lifetime high of 60,437 before profit booking dragged it below the 60,000 mark. The index later recovered to close at 60,044, signaling buying interest on declines.
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For Tuesday, resistance is seen at 60,300–60,400, while immediate support is placed at 59,700–59,800. The RSI has cooled slightly but continues to stay in bullish territory, indicating consolidation rather than a trend reversal.
The Big Picture
With Q3 earnings season around the corner and key US labour market data awaited, traders are likely to remain cautious. Volatility may stay elevated, but strong domestic fundamentals and steady flows into broader markets could help limit downside.
For now, markets appear to be taking a breather after recent record highs — setting the stage for a range-bound but active session on Tuesday.
Disclaimer: Market views are based on inputs from analysts and are for information purposes only. Investors should consult certified financial advisors before taking any investment decisions.
