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Indian equity markets are likely to begin the week on a cautious and range-bound note on Monday, January 12, as benchmark indices Sensex and Nifty 50 struggle to find direction amid persistent global and domestic headwinds. Early cues from GIFT Nifty point to a muted start; it was trading near the 25,796, around 8 points higher than the previous close of Nifty futures.
The Sensex, on Friday, fell by 604.72 points or 0.72%, and closed at 83,576.24, while the Nifty 50 saw a decline of 193.55 points, or 0.75%, to close at 25,683.30. The broader market also saw weakness; the midcap stocks declined by 0.79% and the small-cap ones fell 1.81%.
In terms of sectors, the auto, FMCG, real estate, and consumer durables were the ones dominated by the sellers, falling 1-2%. The IT, PSU banks, and oil & gas stocks, on the other hand, were able to demonstrate relative strength.
Factors like fresh concerns about US trade tariffs, increasing geopolitical conflicts in Iran, and the recent surge in gold prices, indicating the safe-haven demand, have pulled down the sentiment.
The continuous selling by foreign institutional investors (FIIs) has put additional pressure on Indian stocks, while investors remain cautious, waiting for the major corporate earnings calls.
Uncertainty has also been amplified by developments related to US trade measures and sanctions, alongside anticipation around the US Supreme Court’s ruling on the legality of tariffs imposed under the IEEPA.
On the technical side, the Sensex continues to be under pressure. The resistance can be seen at 84,100 and 84,400, where selling is likely to come.
The bulls are expected to be active in the 83,100-83,000 area as it will be an important support zone.
But for a strong uptrend, the index must first clear the resistance convincingly.
Last week, the Nifty 50 experienced a decline of 2.45% and a bearish engulfing pattern was formed on the weekly chart, suggesting a market trend reversal after a long consolidation.
A close below 25,700 will indicate a slide down to 25,400, whereas 25,900-25,960 will serve as a strong resistance.
The negative signals from momentum indicators have contributed to the already hesitant view.
Also Read: Best Small-Cap Stocks in India for 2026
The Bank Nifty dropped 0.73% to close at 59,251 on Friday. The outlook for the index is to stay range-bound between 58,800 and 60,400 in the phase of consolidation.
The support level is placed at 59,000-58,700, and the resistance at 59,600-59,700. The future direction of the market will be indicated by a significant, persistent breakout beyond this range.
