Stock Market Update: Nifty 50, Sensex Set for Cautious Positive Open Amid Weak Technicals

Indian equity markets are expected to open with slight gains supported by positive global cues on Tuesday, January 27. GIFT Nifty shows early signals of an 80-point premium compared to its previous Nifty futures close, trading at 25,160.

The market remained closed on Monday due to Republic Day. On Friday, benchmark indices extended losses. The Sensex declined 769.67 points or 0.94% to close at 81,537.70, while the Nifty 50 fell 241.25 points or 0.95% to 25,048.65. 

Weekly, both indices registered losses of around 2.4-2.5%.

Sensex Outlook

The Sensex formed a long bearish candle, indicating strong distribution according to its weekly chart. 

The index shows a weak near-term structure as it trades below its short-term moving averages. 

The 81,000-81,100 range acts as a key support area which will attract dip-buying activity. The price will accelerate downward if it breaks below this band. 

The 82,000-82,100 range serves as a major resistance zone; a strong breakout is required for the short-term trend to change direction.

Nifty 50 Outlook

The Nifty 50 shows technical weakness as it dropped below its 200-day moving average at 25,140.

The immediate resistance exists between 25,200 and 25,300, followed by 25,500. The level of 25,000 functions as a key psychological hurdle. The index may be dragged towards 24,800-24,600 if it breaks through this level.

The heavy call writing at 25,300-25-400 indicates significant overhead supply, whereas the put concentration at 25,000-25,200 establishes a crucial support area.

The Put-Call Ratio remains subdued amid the upcoming monthly F&O expiry.

Bank Nifty Outlook

The Bank Nifty closed at 58,473 with a 1.23% drop, and the index has fallen below its 50-day exponential moving average. Momentum indicators have turned negative as the MACD has moved below the zero line for the first time since October. 

Immediate support is at 58,000-58,100, followed by 57,500, while resistance is at 58,900-59,000.

Also Read: US Stock Market Today: Stocks Climb as Earnings Strength Offsets Trade Risks and Shutdown Fears

Market View

The decline was broad-based, with all sectoral indices ending in the red. Capital goods, power, realty, PSU banks and media stocks saw heavy selling, falling 2-3%. 

The midcap index backed 1.8% and the smallcap index declined 1.95%, indicating higher risk aversion.

The overall sentiment remains volatile. The combination of weak technical structure, rupee pressure and mixed Q3 earnings results, upcoming US macro data and Federal Reserve decision and Union Budget 2026 events will lead to selective buying rather than aggressive strategies.