The Indian equity market is expected to begin the first trading session of 2026 on a quiet note. Benchmark indices, the Sensex and the Nifty 50, are likely to see a flat to marginally positive opening on Friday, January 2. This cautious sentiment stems from thin trading activity as several major global markets remained shut for the New Year holiday.
Market Indicators and Previous Session Snapshot
The trends on Gift Nifty, which trades outside Indian market hours, suggested a subdued start. It was seen trading at 26,314, marking a slight gain of 23 points or 0.09% over the previous close of Nifty futures.
In the last trading session on Tuesday, which was the inaugural trading day of the calendar year 2026, the market closed with mixed movements. Investors largely engaged in stock-specific actions in the absence of any fresh, broad market triggers. The Sensex dipped by 32 points, or 0.04%, to settle at 85,188.60. On the other hand, the Nifty 50 managed to edge higher by 17 points, or 0.06%, closing at 26,146.55. Analysts anticipate this trend of selective stock movements to continue, keeping the main indices within a defined range until new catalysts emerge. The market is currently in a holding pattern as participants await the upcoming third-quarter corporate results and further developments in the India-US trade negotiations.
Analyst Predictions for Key Indices
Sensex Technical Outlook
As trading resumes for the new year, market experts believe the Sensex has potential for further gains, provided key support levels hold firm. Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted positive technical signals. He noted the formation of a promising reversal pattern on the daily charts, supported by a long bullish candle, indicating a possible uptrend from current levels.
Chouhan identified 85,000 and 84,800 as immediate support zones. He stated that as long as the index trades above these levels, the bullish sentiment is expected to remain intact. The upside potential, according to his analysis, could extend towards 85,800 and even 86,100. However, a decisive break below 84,800 could weaken the current trend.
Nifty 50 Position and Forecast
The Nifty 50 is approaching a critical technical juncture. Analysts suggest that a clear breakout from its current consolidation phase could define the near-term direction for the market.
Ajit Mishra, SVP–Research at Religare Broking, offered a constructive view. He expects the Nifty to gradually move out of the consolidation. A decisive move above the 26,200 level could open the path towards the 26,500–26,700 zone in the short term. He advised traders to maintain a positive bias, consider buying on dips, and focus on sectors like banking, auto, and metals while practicing strict risk management.
Echoing this, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, affirmed the supportive broader trend. After forming a higher bottom reversal at 25,878, he anticipates the Nifty to move higher and decisively break above the 26,200 hurdle after a brief consolidation. Immediate support is placed at 26,050, with a successful breakout potentially targeting 26,300–26,400.
Bank Nifty Strength and Levels to Watch
The banking sector index, Bank Nifty, remains in focus with technical indicators suggesting sustained near-term strength. Its ability to hold crucial support will be key for extending the ongoing uptrend.
Om Mehra, Technical Analyst at SAMCO Securities, pointed out that the Bank Nifty ended the previous session at 59,711.55, gaining 0.22%. The index continues its bullish trajectory after pulling back from its all-time high near 60,114.30. It is trading above all key moving averages, with the Relative Strength Index (RSI) above 60 and a bullish MACD crossover supporting momentum.
Mehra observed that any minor correction towards the 59,450–59,500 zone is being absorbed by buyers. The 59,450–59,400 band acts as a crucial support area. On the upside, 59,850 is the immediate resistance, followed by the 60,000 mark. He suggested that pullbacks towards support could offer accumulation opportunities as the overall trend remains bullish.
Disclaimer: The views and recommendations presented are those of individual analysts or broking firms and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
