The Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to commence trading on a positive note this Tuesday, mirroring gains observed in global markets. This optimistic outlook is further reinforced by the trends visible on Gift Nifty, which was trading at approximately 25,160 levels, indicating a premium of nearly 80 points compared to the previous close of Nifty futures.
Market Context and Previous Session Performance
It is important to note that the Indian equity markets remained closed on Monday, January 26, 2026, in observance of Republic Day. The preceding trading session on Friday witnessed a significant downturn, with both major indices closing sharply lower. The benchmark Nifty 50 settled near the 25,000 mark, while the Sensex experienced a substantial decline.
Specifically, the Sensex plummeted by 769.67 points, or 0.94%, concluding the session at 81,537.70. Similarly, the Nifty 50 dropped by 241.25 points, or 0.95%, ending at 25,048.65. This downward movement has set a cautious tone for the market as it resumes trading this week.
Sensex Technical Analysis and Prediction
Over the past week, the Sensex registered a decline of 2.4%, forming a pronounced bearish candle on the weekly charts. The index is currently trading comfortably below its short-term moving averages, a technical configuration largely interpreted as negative by market analysts.
Expert Insights on Sensex Levels
Hitesh Tailor, Research Analyst at Choice Equity Broking, provided a detailed perspective. "With Sensex ending decisively below recent intermediate levels and broad-based selling dominating the session, the near-term bias remains cautious to bearish," he stated. Tailor emphasized that selective accumulation might be considered only if key support zones hold and clear buying interest re-emerges.
He identified the 81,000 – 81,100 zone as a crucial support area, potentially acting as a cushion where dip-buying interest could surface during further weakness. "On the upside, 82,000 – 82,100 stands as the immediate resistance band, where any short-term rebound is likely to encounter supply pressure and profit booking," Tailor added.
Echoing a similar sentiment, Mayank Jain, Market Analyst at Share.Market, noted that as long as the Sensex remains below the 82,000 level, the short-term structure appears weak, with the path of least resistance trending downward. Jain pegged immediate support in the 81,000 – 80,900 zone, with Friday's low near 81,200 serving as an initial cushion. However, a breach here could open the doors to the 81,000 level.
Nifty 50 Technical Outlook and Prediction
The Nifty 50 index formed a bearish candle on the daily chart, reflecting continued weakness. Last week, the index dropped 2.5%, forming a long bear candle on the weekly chart as well.
Analyst Views on Nifty 50 Trajectory
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, offered his analysis. "A long bear candle was formed on the daily chart which indicates a formation of lower top reversal pattern at the recent swing highs of 25,400 levels," he explained. Shetti added that the overall chart pattern remains negative, and one may expect the Nifty 50 sliding below the recent low of 24,900 this week. He identified the near-term downside target around 24,600, with immediate resistance placed at the 25,200 level.
Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking Ltd., highlighted that the Nifty 50 broke below its long-term 200-Day Moving Average (DMA) placed at 25,140. "The broader market structure remains negative, as the MACD has confirmed a sell crossover on both the daily and weekly timeframes," he noted. Jain suggested that while a short-term pullback cannot be ruled out, the Nifty would need to decisively reclaim the 25,300 level to trigger any meaningful short-covering rally towards the 25,600 zone. On the downside, a breach below 25,000 could intensify selling pressure, potentially dragging the index towards 24,800 levels.
Nifty Options Data and Expiry Impact
Ponmudi R, CEO of Enrich Money, commented on the Nifty options positioning, suggesting a range-bound bias. Call writing is reportedly heavy around the 25,300 – 25,400 strike prices, indicating resistance, while put support is visible near 25,000 – 25,200. The Put-Call Ratio remains subdued, reflecting a cautious market sentiment.
Ahead of the monthly Futures & Options (F&O) expiry in the upcoming session, market volatility is expected to remain elevated. The Nifty 50 is likely to oscillate within a broader range of 24,900 to 25,200, according to analysts.
Bank Nifty Prediction and Technical Analysis
The Bank Nifty index ended 727.00 points, or 1.23%, lower at 58,473.10 on Friday, forming a long bearish candlestick. For the week, the index plunged 2.7% and formed a strong bearish candle on the weekly chart, highlighting a clear deterioration in momentum.
Key Levels for Bank Nifty
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, provided insights. "On the daily chart, the Bank Nifty index has slipped below its 50-day Exponential Moving Average (EMA), reflecting short-term trend weakness," he said. Shah noted that the Moving Average Convergence Divergence (MACD) has moved below the zero line for the first time since October 2025, reinforcing the emerging bearish bias.
For Bank Nifty, Shah identified immediate support in the 58,100 – 58,000 zone, which aligns with the 100-day EMA, making it a crucial demand area to watch. "A sustained breakdown below this zone could open the door for further downside towards 57,500, followed by 57,000 in the near term," he cautioned. On the upside, he believes the 58,900 – 59,000 zone is likely to act as a strong resistance, capping any recovery attempts.
Bajaj Broking Research highlighted that the Bank Nifty index has generated a breakdown below its last seven-week consolidation range (58,800 - 60,400), underscoring weakness. The firm stated that follow-through selling pressure could open further downside towards 57,600 and 57,000 levels in the coming weeks. On the higher side, 59,000 will act as immediate resistance, and only a move above that level could open further upside towards 59,600.
Disclaimer: The views and recommendations presented above are those of individual analysts or broking companies. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
