05/01/2026 Indian Stock Market Outlook – Pre-Market & Derivatives View

Market Overview Indian equity markets continue to trade at record-high levels, supported by strong global cues, healthy domestic fundamentals, robust FII/DII participation, and encouraging quarterly business updates. Broader market sentiment remains firmly bullish, with buying interest visible across sectors. 🔎 Nifty 50 – Technical View The Nifty index witnessed a strong upward momentum, opening positive and rallying sharply to register a fresh all-time high near 26,340. Sustained buying across sectors helped the index close near its day’s high, forming a bullish candle on the daily chart. The index is consistently making higher highs and higher lows, indicating continuation of the uptrend. Key Levels: Support: 26,200 | 26,100 Resistance / Targets: 26,500 | 26,600 As long as Nifty holds above 26,250, the bullish momentum is likely to continue. 📈 Derivatives & Option Data – Nifty Put/Call Ratio increased, indicating improving bullish sentiment Maximum Call Open Interest at 26,300 & 26,500 Maximum Put Open Interest at 26,200 & 26,300 Call writing visible at higher strikes, while Put writing at support levels Expected Trading Range: Broad Range: 25,800 – 26,700 Immediate Range: 26,100 – 26,500 🔎 Sensex – Technical View The Sensex opened strong and maintained positive momentum throughout the session. Continuous buying on intraday dips reflects sustained bullish sentiment. The index closed near its highs, forming a bullish candle on daily and weekly charts. Key Levels: Support: 85,400 | 85,200 Resistance / Targets: 86,000 | 86,200 🏦 Bank Nifty – Technical View Bank Nifty extended its rally to hit a new lifetime high above 60,200, supported by consistent buying interest in banking stocks. The index formed a strong bullish candle on both daily and weekly charts. Key Levels: Support: 60,000 | 59,750 Resistance / Targets: 60,500 | 60,750 Holding above 60,000 keeps the trend positive. 📊 Bank Nifty – Derivatives Data Maximum Put OI near 59,500 – 60,000 Maximum Call OI near 60,000 Put writing at support zones suggests strength Expected trading range: 59,750 – 60,750 🌍 Global & Macro Cues Asian markets trading strong, led by technology stocks US markets closed positive, supported by semiconductor stocks European markets at record highs Precious metals surged amid rising geopolitical tensions Crude oil prices remain volatile but stable 🏭 Sector-wise Outlook 🚗 Auto & Auto Ancillaries Positive momentum expected after strong monthly sales data and improving demand trends. 🏦 PSU Banks Strong quarterly business updates indicate healthy credit growth and improving asset quality. ⚡ Power & Energy Positive sentiment due to capacity expansion, renewable focus, and policy support. 🧪 Fertilizers Expect positive outlook amid expectations of higher subsidy allocation in the upcoming budget. 🚆 Railways & 🛡️ Defence Likely beneficiaries of increased government spending due to infrastructure push and geopolitical developments. 💎 Metals & Mining Strength supported by rising global commodity prices and improved demand outlook. 💰 Institutional Activity FIIs and DIIs remained net buyers in the cash market Short covering seen in index futures Call buying and Put selling observed in index options Improvement in FII long-short ratio indicates bullish bias 📌 Market Summary The broader market remains supported by: Strong quarterly business updates Rising industrial production data Positive global market sentiment Expectations of a growth-oriented Union Budget Renewed foreign investor interest Any short-term correction is likely to be seen as a buying opportunity. ⚠️ Disclaimer This blog is for educational and informational purposes only. We are not SEBI registered. The views expressed are based on publicly available data, technical analysis, and market observations. Stock market investments are subject to market risks. Readers are advised to consult a certified financial advisor before making any investment decisions.