Market Outlook & Technical Setup – 7 January 2026

📉 Market Overview Indian equity markets are expected to open marginally lower amid weak global cues, continued FII selling pressure, and a slowdown in domestic services sector growth. However, strong quarterly business updates, robust auto sales, and record-high commodity prices may provide support at lower levels. Globally, US markets remain strong with major indices closing at record highs on optimism around AI-led growth and possible US Federal Reserve rate cuts. Asian markets are trading mixed. 🔎 Index Technical View Nifty 50 Nifty formed a small-bodied candle on the daily chart, indicating indecision after recent gains. The index has broken its short-term higher-highs pattern, suggesting consolidation. Key Levels: Resistance: 26,200 → 26,350 → 26,500 Support: 26,050 → 25,950 Options Data Insight: Maximum Call OI: 26,200 & 26,500 Maximum Put OI: 26,000 & 26,200 Immediate trading range: 26,000 – 26,400 Broader range: 25,800 – 26,600 Sensex Sensex showed muted momentum with mild profit booking. The broader structure remains intact, indicating a pause in trend rather than a reversal. Key Levels: Above 85,200: Upside towards 85,500 – 85,700 Below 85,200: Weakness towards 84,800 – 84,500 Bank Nifty Bank Nifty witnessed buying at lower levels but lacked follow-through at higher zones. Price action suggests range-bound movement. Key Levels: Support: 60,000 → 59,750 → 59,500 Resistance: 60,437 → 60,750 Options Range: 59,500 – 60,750 📈 Derivatives & Institutional Activity Put/Call Ratio declined to 0.92, indicating cautious sentiment FIIs were net buyers in cash market, while DIIs continued strong buying Index futures saw long buildup, while stock futures saw selective shorts FII Index Long–Short Ratio increased to 12.73% 🏭 Sector-wise Outlook 🔹 Positive Bias Sectors PSU Banks – Strong Q3 business updates and improving asset quality Metals & Mining – Copper, silver, nickel at record highs due to supply concerns Auto & Auto Ancillaries – Strong monthly sales and EV launches Pharma & Healthcare – New product launches and steady export demand Consumer & FMCG – Gradual consumption recovery and stable margins Infrastructure & Capital Goods – New orders and government spending visibility Jewellery & Retail – Strong festive demand and impressive quarterly updates 🔸 Cautious / Weak Sectors IT Services – Valuation concerns and muted near-term growth Power Exchanges – Regulatory uncertainty Selective Mid & Small Caps – Profit booking after sharp rallies 🌍 Global & Commodity Update US Markets: Record highs driven by AI optimism and rate-cut expectations Europe: Strength led by healthcare and metal stocks Gold: Firm on safe-haven demand Silver: Surged to all-time highs Copper & Nickel: Up sharply on supply concerns Crude Oil: Soft amid geopolitical developments 🧭 Market Strategy While near-term volatility may persist, India remains a structurally strong market with attractive valuations. Any correction should be viewed as a buying opportunity, especially in banks, metals, infrastructure, auto, and consumption-linked sectors. ⚠️ Disclaimer This content is for educational and informational purposes only. We are NOT SEBI registered. The views expressed are personal interpretations of publicly available market data and technical indicators. Investments in the securities market are subject to market risks. Readers are advised to consult a SEBI-registered financial advisor before making any investment decisions.