Bajaj Broking Market Commentary: Benchmark indices witnessed heightened volatility during the monthly expiry session. After hitting an intraday low of 24,932, the Nifty staged a strong recovery and closed near the day’s high, reflecting improved sentiment. Optimism was supported by positive developments around the India–EU Free Trade Agreement (FTA) and firm global cues. The Sensex ended the session higher by 319.78 points (+0.39%) at 81,857.48, while the Nifty 50 also posted healthy gains of 126.75 points (+0.51%) to close at 25,175.40.

On the sectoral front, strong buying interest was observed in Nifty Metal, Banking, and Oil & Gas stocks, which led the market higher. In contrast, Nifty Media, Auto, and FMCG witnessed profit booking, while the remaining sectors showed mixed performance. The broader market also remained supportive, with sustained buying interest. The Nifty Midcap index advanced by 0.59%, while the Small Cap index gained 0.41%, broadly in line with the benchmark indices.

Nifty Outlook 

Nifty has formed a bullish candlestick pattern with a lower shadow, indicating buying demand at lower levels on the monthly expiry session. Volatility is expected to remain high on account of the Union Budget scheduled for February 1, 2026, and volatile global market.

The daily and weekly stochastic oscillators are placed at an oversold levels after a sharp 1,400-point fall in just 15 sessions, holding above the 25,000–24,800 support may lead to consolidation in the 24,800–25,500 range, with 25,400–25,500 acting as key resistance. Nifty is currently hovering near the lower end of its seven-month rising channel which also coincides with the 52-week EMA placed around 25,000–24,800 zone. A decisive break below this support could extend the decline in the coming sessions.

Bank Nifty Outlook

The Bank Nifty on the daily chart has formed a bullish candlestick pattern which almost engulfed it’s previous session price action, signalling buying demand at lower levels around the 100 days EMA and a lack of follow through to previous sessions sharp decline. Key support is placed at 58,000-57,500 levels being the confluence of the 100 days EMA and the major breakout area, holding above the same will open upside towards 60,000-60,400 levels in the coming sessions. The daily stochastic has generated a buy signal moving above its nine periods average thus validates positive bias.

Ashika Institutional Equities

Indian equity markets ended Tuesday’s session on a volatile note after opening higher, supported by positive global cues and an overnight rally on Wall Street. The benchmark Nifty 50 opened at 25,063, scaled an intraday high of 25,184, but slipped to a low of 24,932 amid sharp swings during the session. Market sentiment was buoyed by optimism around the India–European Union free trade agreement and expectations that the US could ease tariff-related measures linked to India’s imports of Russian oil.

Adding to the positive undertone, Prime Minister Narendra Modi on Tuesday announced the conclusion of a landmark India–EU free trade pact, covering economies that together account for nearly a quarter of global GDP and about one-third of global trade. The European Commission President termed the agreement a historic breakthrough, describing it as the “mother of all deals,” and noted that India and the EU would also undertake joint naval exercises to combat piracy. The deal is expected to create millions of jobs across both regions, further supporting investor confidence.

However, the benchmark index witnessed heightened volatility with moves on both sides, as the session coincided with the January 2026 monthly derivatives expiry. On the sectoral front, buying interest was seen in Metals, Commodities, CPSE, PSE and PSU Banks, while selling pressure weighed on Media, Auto, Realty, FMCG and Healthcare stocks.

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Motilal Oswal Financial Services Ltd

Equity markets witnessed a choppy session with sharp intraday swings in key benchmark indices, driven by the monthly F&O expiry and mixed global cues. Despite the volatility, the Nifty recovered smartly from early lows to end at the day’s highs, closing 0.5% higher, supported partly by short covering and largely by optimism surrounding the India–EU FTA. Broader markets also staged a recovery from intraday lows, with the Nifty Midcap 100 gaining 0.6% and the Nifty Smallcap 100 rising 0.4%. Sectoral performance was mixed. Metal stocks outperformed, with the Nifty Metal index gaining +3%, followed by Nifty PSU Bank, which rose +1.8%. On the downside, Nifty Auto declined -0.9% after details of the India–EU free trade agreement indicated a potential reduction in import duties on a limited number of European cars to around 40%, from the current 70–110%.

Sentiment improved after the India–EU FTA was finalised following nearly two decades of negotiations. The pact is expected to enhance market access for Indian exporters, particularly in pharma, auto ancillaries, textiles and chemicals, while keeping certain sensitive sectors excluded. Additionally, liquidity measures announced by RBI, including plans to inject over USD 23 billion through bond purchases, forex swaps and repos, added to positive sentiment. Going forward, MOFSL expects markets to remain rangebound tracking global developments and geopolitical cues, while domestically, stock-specific movements are likely to be driven by the ongoing Q3 earnings season.