Indian equity benchmarks extended their losing streak to a fifth straight day on Friday, January 9, succumbing to a potent mix of global trade anxieties, pre-earnings season caution, and relentless selling by foreign institutional investors. The benchmark indices closed sharply lower, dragging broader markets down with them.
Market Performance and Key Drivers
The S&P BSE Sensex plunged 605 points, or 0.72%, to settle at 83,576.24. The broader Nifty 50 index dropped 194 points, or 0.75%, ending the session at 25,683.30. The sell-off was not confined to large caps. The BSE Midcap index declined by 0.90%, while the Smallcap index faced a steeper cut, tumbling 1.74%.
The downturn was fueled by fresh concerns over potential US tariffs, which dampened global risk appetite. Domestically, investor sentiment turned cautious ahead of the imminent start of the December quarter (Q3) corporate earnings season. Persistent outflows of foreign portfolio investment (FPI) money continued to act as a significant overhang on market performance.
Technical Outlook: Nifty 50 and Bank Nifty
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 opened weak and saw selling pressure intensify throughout the trading day. The index decisively broke below the crucial support level of 25,800, closing at 25,683, which confirms a short-term bearish bias. Immediate resistance is now seen in the 25,800–25,850 zone, while vital support lies at 25,500–25,550.
Momentum indicators reflect the weakness. The daily Relative Strength Index (RSI) is at 38.55 and trending lower, signaling deteriorating momentum. The India VIX, a fear gauge, rose 3.07% to 10.92, indicating a marginal increase in expected near-term volatility. Derivatives data points to heavy call writing and strong put accumulation at the 25,800 strike, solidifying it as a key near-term hurdle.
The Bank Nifty witnessed a sharp bearish move of nearly 590 points, hitting an intraday low of 59,154. This suggests aggressive profit booking and supply pressure. The index appears to be in a consolidation-to-correction phase. Key resistance is placed at 59,500–59,600, with critical support in the 59,000–58,900 band. Its daily RSI at 47.96 is also trending lower.
Expert Stock Recommendations for the Week
Despite the weak market structure, Sumeet Bagadia has recommended a selective buy-on-dips strategy with strict stop-losses. He has identified three stocks for potential buying opportunities on Monday, January 12:
- Ujjivan Small Finance Bank: Buy at ₹59.34, Target Price: ₹63.5, Stop Loss: ₹57.25
- NHPC: Buy at ₹82.43, Target Price: ₹88.3, Stop Loss: ₹79.5
- Zee Entertainment Enterprises: Buy at ₹91, Target Price: ₹97.4, Stop Loss: ₹87.8
Bagadia advises that for Nifty, a buy-on-dips approach can be considered as long as the index holds above 25,600, with a strict stop-loss placed at 25,500. For Bank Nifty, traders are advised to maintain a bullish bias and look for buying opportunities near key support levels, backed by disciplined risk management.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
