The 50-stock index closed 28.75 points or 0.11% higher on Friday to end at 25,694.35.
While the Nifty managed to end positive on Friday, the index closed the session forming a bearish gravestone doji candlestick on the daily chart, Vatsal Bhuva, Technical Analyst at LKP Securities said, as he highlighted the bearish crossover and underlying weakness in the RSI.
“The index is currently consolidating with a bearish undertone between the 25,550–25,600 zone, where the 100-day SMA is placed and is being repeatedly tested, and the 25,850–25,900 resistance area. Traders may look to trade this defined range between 25,850 and 25,550. A sustainable bullish bias can emerge only after the index decisively reclaims its 50-day SMA. Immediate support lies at 25,550–25,600, while resistance is placed near 25,900,” he added. He expects sentiments to remain weak in the short term with potential for a further downside.
1. Geopolitics
The US-Iran tension is expected to weigh on global markets. While, Iran’s decision to call-off the execution of hundreds of protestors arrested in a crackdown calmed the nerves, US officials said military action was still on the table if Iran resumed the killing of protesters.
The US military was sending additional defensive and offensive capabilities to the region to be ready in case Trump ordered a strike, TOI reported quoting US sources. The Abraham Lincoln aircraft carrier and its strike group were making their way to the Middle East from the South China Sea. More air defence systems, fighter jets and possibly submarines were also expected to arrive in the region.
Meanwhile, PTI reported that India is mulling various options on its engagement in the development of the strategically-located Chabahar port in Iran against the backdrop of the Trump administration threatening a 25% additional tariff on countries doing business with Tehran.
2. Q3 earnings
It will be an earnings heavy week with over 230 companies announcing their October-December quarter results. In the Nifty pack, Eternal (Zomato), Kotak Mahindra Bank, UltraTech Cement and InterGlobe Aviation will be posting their results.
The other widely tracked companies like LTIMindtree, Punjab National Bank (PNB), Tata Capital, ITC Hotels, Adani Green Energy, IndusInd Bank and Urban Company will also report the quarterly numbers.
The market will also react to the earnings of Reliance Industries (RIL) and Wipro, who announced their results after market hours on Friday and HDFC Bank, ICICI Bank, Yes Bank on Saturday.
3. US markets
Domestic markets will take cues from the action on Wall Street. On Friday, the frontline US indices ended lackluster. Dow 30 settled at 49,359.30, down 83.11 points or 0.17% while S&P 500 closed at 6,940.01, declining 4.46 points or 0.06%. Meanwhile, Nasdaq Composite ended with a minor decline of 14.63 points or 0.06% at 23,515.40.
4. FII / DII action
While Friday data shows Foreign Institutional Investors (FII) sold Indian equities worth Rs 4,346.13 crore, the foreign outflows over the first fortnight in January stood at Rs 22,530 crore.
The domestic institutional investors (DIIs) were net buyers at Rs 3,935.31 crore.
It appears that the FII selling trend may continue until some positive triggers for a market rally happens, VK Vijayakumar, Chief Investment Strategist, Geojit Investments said. “The AI trade that dominated the stock market trend in 2025 is continuing in early 2026 also. A reversal of this trend might happen sometime in 2026,” he added.
He also blamed poor earnings growth, elevated valuations in India along with continuing suspense over the US-India trade agreement, among other principal reasons for this tepid performance of Indian stock markets.
5. IPO watch
Plenty of action is lined-up in the domestic primary market with 4 companies looking to raise about Rs 2,066 crore through initial public offerings (IPOs).
In the mainboard category, logistics firm Shadowfax Technologies will launch its IPO on Tuesday, January 20. The company has set the price band at Rs 118 – Rs 124. In the SME segment, IPOs of Digilogic Systems, KRM Ayurveda and Shayona Engineering will open for public bidding.
A total of seven listings will happen this week, including two closely watched mainboard debuts – Bharat Coking Coal and Amagi Media Labs. Bharat Coking Coal’s IPO has already drawn strong attention, with subscription at 147 times and grey market premium indicating a potential 57% listing gain.
Read more: IPO Calendar: Shadowfax among 4 IPOs worth Rs 2,066 crore to hit the market; Bharat Coking Coal to lead 7 listings
6. Technical triggers
Osho Krishan, Chief Manager -Technical and Derivative research at Angel One said that the domestic markets will take cues from the development around trade tariffs, escalating geopolitical tensions, quarterly earnings announcements along with key macroeconomic data.
From a technical perspective, the index is positioned at a critical inflection point, where any adverse developments on the global front could potentially disrupt the prevailing chart structure in the near term. On the downside, the 25,500-25,450 zone has emerged as a key support area, providing a cushion against declines, Krishan said.
“This range is expected to remain a crucial support band in the event of further weakness during the upcoming week. On the upside, the index continues to face strong resistance in the 25,875-25,900 range, which coincides with the 50-day EMA. In the absence of a decisive and sustained breakout above this resistance zone, the Nifty50 is likely to trade cautiously, with a consolidative bias,” he added.
7. Rupee Vs dollar
The Indian rupee slid to its worst one-day fall in nearly two months on Friday, as elevated dollar demand from importers alongside maturing positions in the non-deliverable forwards market hurt the South Asian currency. The rupee closed at 90.8650 per dollar, down 0.6% on the day to log its worst drop since mid-November last year and inching closer to its all-time low of 91.0750 hit in December. The currency was down about 0.7% week-on-week.
Intermittent dollar sales from state-run banks, most likely on behalf of the Reserve Bank of India, helped limit the currency’s fall, Reuters reported, quoting traders.
“The depreciation pressure on the INR is likely to stay here, especially in the absence of an India-US trade deal,” analysts at ANZ said in a note.
Meanwhile, Asian currencies were largely rangebound and the dollar index hovered near a six-week high after upbeat U.S. economic data left traders trimming bets on Federal Reserve rate cuts.
8. Gold, silver trends
After an extraordinary performance in 2025, both gold and silver have continued trading with strong uptrends in 2026 so far. The latest US-Iran conflict has given a fresh impetus to the bullion along with rupee’s slide against the US dollar.
Any further escalation in the crisis is expected to further push the safe haven appeal of gold and silver.
Gold prices have jumped by over 5% or Rs 7,000 per 10 gram in 2026, month-to-date while the white metal has gained 22% or by Rs 52,000 per kg in the first fortnight of January.
Also read: Gold-to-silver ratio hits 13-year low as silver’s 170% surge leaves gold behind. What should investors do?
9. Corporate action
Select stocks will be in focus this week because of corporate actions. Among them will be the recently listed ICICI Prudential Asset Management Company, which will have its record date for its interim dividend of Rs 14.85 per share on Wednesday, January 21.
Others like Bank of Maharashtra, NLC India, Angel One, Central Bank of India and DCM Shriram will also have record dates for interim dividends, during the week.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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