📊 Market Outlook – 19 January 2026

Global Cues & Market Sentiment Indian equity markets are expected to open on a subdued note, tracking weak global cues. US index futures are down nearly 1% after the US President announced fresh tariffs on select European countries, escalating geopolitical tensions related to Greenland. Asian markets are also trading over 1% lower, reflecting global risk aversion. Precious metals have surged sharply, with gold and silver hitting record highs, as investors seek safe-haven assets. The US Dollar Index has climbed to a six-week high, adding pressure on emerging markets. The US market is shut today, which may keep volumes light, but volatility could remain elevated due to global uncertainties. 📉 Domestic Market Overview GIFT Nifty indicates a weak start, down around 150–160 points (0.6%) Continued FII selling remains a concern, while DIIs continue to provide support Uncertainty around the US–India trade agreement is weighing on sentiment Despite near-term weakness, overall market structure remains constructive Supportive factors include: Strong quarterly earnings from select sectors Expectations of a favourable Union Budget India’s FY26 GDP growth outlook revised upwards Domestic inflation easing below 2%, strengthening the case for further RBI rate cuts Markets are likely to remain stock- and sector-specific, and any sharp correction could present buying opportunities. 🧭 Sector-wise Outlook 🔹 PSU Banking Sector Positive momentum expected after strong quarterly performance and improving asset quality across public sector banks. 🔹 Metal Sector Positive bias as base metal prices remain strong, with copper at record highs and aluminium at multi-year highs. 🔹 IT Sector Sentiment improved following better-than-expected results and improved outlook, supporting near-term stability. 🔹 Defence Sector Strong long-term outlook after approval to acquire 114 fighter jets, boosting defence manufacturing and ancillaries. 🔹 Tea Sector Positive momentum as auction prices surge due to strong demand and supply constraints in India and Kenya. 🌏 Global Market Snapshot Asian Markets Asian indices declined sharply amid tariff-related uncertainty and concerns over US Federal Reserve leadership. US Markets US indices ended marginally lower on Friday as investors reacted to uncertainty over the next Federal Reserve Chair. European Markets European equities closed lower, weighed down by rising inflation in Germany. 🪙 Commodities & Currency Gold & Silver: Hit record highs on geopolitical tensions Brent Crude: Up around 1%, trading above $64/bbl Dollar Index: At six-week high USD/INR: Rupee remains under pressure 🏦 Institutional Activity FIIs: Net sellers (~₹4,300+ crore) DIIs: Net buyers (~₹3,900+ crore) Monthly trend shows continued FII outflows, while DIIs remain supportive 📈 Technical View – Index Levels Nifty 50 Support: 25,600 → 25,500 Resistance: 25,850 → 26,000 Holding above 25,650 may lead to a bounce Bank Nifty Support: 59,750 → 59,500 Resistance: 60,250 → 60,500 Strength intact as long as it holds above 60,000 Option data suggests: Immediate range: 25,500 – 25,900 Broader range: 25,400 – 26,100 📌 Key Themes to Watch Ongoing earnings season volatility Global trade tensions & geopolitics Precious metals strength Sector rotation rather than broad-based rally ⚠️ Disclaimer This blog is for educational and informational purposes only. We are not SEBI registered investment advisors or research analysts. The views expressed are based on publicly available information and market data and should not be considered as investment advice. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions.