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Stock Market Update: Nifty 50, Sensex Poised for Positive Open Amid Mixed Global Signals
Indian stock markets are set to open the day on a positive note on the 16th of January, Friday, after the holiday break, backed by positive signals from GIFT Nifty and the strength in some of the domestic sectors. GIFT Nifty was at around 25,778, nearly 60 points above the last Nifty Futures close.
Market Snapshot
On Wednesday, the Indian stock market experienced its fourth consecutive day of decline. The Sensex fell by 245 points or 0.29% to 83,382 and the Nifty 50 closed down 0.26% at 25,665, going below the 25,700 level.
Although the market showed weakness, the Nifty Midcap 100 and Nifty Smallcap 100 indices moved against the market trend, gaining 0.3% and 0.7%, respectively. This indicates a selective risk appetite outside the large-cap stocks.
Sensex Outlook
Technically, Sensex is still holding strong at its crucial support level close to 82,900-83,000, where the selling pressure has been absorbed in the last few sessions.
On the other hand, the 83,800-83,900zone has been acting as a resistance area and is capping recovery attempts.
If this resistance area is not taken out decisively, then it can be expected that the index will continue to be range-bound, where traders will be more inclined to buy stocks selectively on dips rather than do broad-based buying.
Nifty 50 Outlook
The Nifty 50 price action suggests a range-bound movement with volatility between 25,600 and 25,900, signaling that there is no strong buying support yet.
The support is at 25,600, and if there is a clear break below this point, prices could move towards 25,500-25,400.
The momentum indicators continue to show subdued strength, as the RSI is around 40, reflecting a bearish outlook, while MACD continues to be in the negative zone.
Bank Nifty Outlook
The Bank Nifty closed the last session at almost 59,580, reflecting consolidation amid volatility.
The 60,000-60,100 zone is the immediate resistance, whereas the 59,300-59,200 level is the strong support.
On the one hand, a sustained breakout above the resistance may lead to a short-term rally, while a failure may lead the index to be trapped in the range.
Also Read: US Stock Market Today: US Stocks Rise as AI-Led Tech Rally Follows Strong Semiconductor Outlook
Sectoral Trends
The performance of different sectors was mixed. The Metal stocks, led by global metal prices, with the Nifty Metal index gaining 2.7% to new all-time highs.
The PSU Bank index increased by 2.1% after the positive Q3 FY26 business updates by some lenders.
On the other hand, IT stocks experienced a decline of 1.1%, while the real estate market saw a decrease of 0.8% due to fears over weak pre-sales and cost-of-living pressures. The automotive sector also reported a decrease of 0.7%, reflecting a cautious demand forecast.
Foreign institutional investors (FIIs) remain net sellers and sold shares worth about Rs 1,500 crore, which is the seventh consecutive session of selling in January.
