📈 Market Outlook & Sectoral View – 2 January 2026

🔍 Market Focus Indian equity markets are expected to open on a positive note, supported by strong domestic cues and improving sentiment. Gift Nifty is trading higher by around 0.2%, indicating a firm start. Key positive triggers include: Robust December auto sales data Healthy GST collections despite recent rate cuts Strong quarterly business updates from PSU banks 25-month high IIP data for November Optimism around a supportive Union Budget Global markets were largely shut due to the New Year holiday, but US index futures and select Asian markets are trading in the green ahead of the US Manufacturing PMI data. Technically, Nifty holding above the 26,100 zone indicates a continuation of the bullish trend. Any intraday dips are likely to offer buying opportunities. 📊 Index Technical View 🔹 Nifty Outlook Trend remains positive Support: 26,050 – 25,950 Resistance: 26,250 – 26,325 Structure: Higher highs and higher lows on the daily chart 🔹 Bank Nifty Outlook Consolidation with bullish bias Support: 59,500 – 59,250 Resistance: 60,000 – 60,114 Holding well above 20-DEMA, indicating strength 🏭 Sector-wise Outlook 🚗 Auto Sector – Positive Strong December sales growth across: Two-wheelers Passenger vehicles Commercial vehicles Tractors Improving demand, festive momentum, and rural recovery continue to support the sector. 🏦 PSU Banking Sector – Positive Strong growth in: Deposits Advances Overall business volumes PSU banks with improving asset quality and stable CASA ratios are expected to remain in focus. 🥈 Silver & Metal-linked Stocks – Positive Silver prices at record highs Strong outlook for mining and metal producers Beneficiaries of global commodity uptrend 🚬 Cigarette & Tobacco Sector – Negative / Volatile Government approved a sharp excise duty hike (22–28%) Pressure likely on margins and volumes Expect near-term volatility in this space 🍔 QSR & Consumption Stocks – Stock-specific High order volumes during the festive season Margin outlook remains mixed due to cost pressures Selective opportunities only ⚡ Power, Infrastructure & Railways – Positive New project wins Capacity expansion Renewable and EV-related developments supporting long-term outlook 🧪 Pharma & Healthcare – Positive New product approvals Acquisitions and capacity expansions Export-driven growth remains supportive ⚙️ Capital Goods & Manufacturing – Positive Higher IIP data Government capex push Order inflows improving visibility 🌍 Global Cues Snapshot Asian Markets: Marginally positive; Japan & China closed US Futures: Positive ahead of Manufacturing PMI Gold: Up ~0.5% amid geopolitical tensions Brent Crude: Flat near $61/bbl ahead of OPEC+ meeting 🧾 Key Events to Watch US Manufacturing PMI India Forex Reserves data 📝 Final View The broader market structure remains constructive, with domestic fundamentals providing strong support. Sector rotation is clearly visible, favoring autos, PSU banks, metals, infrastructure, and manufacturing, while FMCG and cigarette-related stocks may remain under pressure in the near term. Traders should focus on buy-on-dips strategies, while investors may look at sectoral themes rather than individual stock chasing. ⚠️ Disclaimer This blog is for educational and informational purposes only. We are not SEBI registered. This is not investment advice or a recommendation to buy or sell any securities. Stock market investments are subject to market risks. Please consult a SEBI-registered financial advisor before making any investment decisions.