Bajaj Broking Research: Indian equity benchmarks ended the session on a strong note on January 22, snapping a three-day losing streak, with the Nifty consolidating near the 25,300 mark amid volatility driven by the weekly Sensex expiry.

Markets staged a rebound after concerns eased following reassuring comments by President Trump at the Davos meet on Greenland and trade tariffs. However, sentiment remained guarded due to persistent weakness in the rupee and ongoing foreign institutional investor outflows.

At the close, the Sensex gained 397.74 points, or 0.49%, to settle at 82,307.37, while the Nifty rose 132.40 points, or 0.53%, to end at 25,289.90. On the sectoral front, all indices except realty finished in the green. FMCG, power, metal, media, PSU banks, and pharma stocks led the gains, rising between 1–2%. The broader markets also outperformed, with the Midcap index advancing 1.34% and the Small cap index climbing 0.76%.

Nifty Outlook

Nifty formed a second consecutive high-wave candlestick pattern featuring a small real body and long upper/lower shadows. This reflects continuation of the intraday volatility as the index closed around the 200 days EMA. 

Buying demand during the week emerged near the key support zone of 25,000–24,800. This area aligns with the prior breakout level and the lower band of the rising channel on the weekly timeframe.

Following a sharp 1,400-point decline over just 12 sessions, the index has entered an extreme oversold territory on the daily chart, which has resulted in a pullback in the last two sessions.

Bajaj Broking expects the current pullback to extend towards the 25,500 levels. It expects Nifty to consolidate in the range of 25,500–24,800 range. Only a move above 25500 will open further upside towards the major breakdown area of 25,70.

Bank Nifty Outlook

The Bank Nifty formed a doji candlestick pattern with long shadows in either direction signaling consolidation amid stock specific action. The 58,700–59,000 zone remains a key short-term support. Although the index briefly dipped to 58,278.6 on Wednesday session it did not close near the lows, indicating buying interest at lower levels. This area also coincides with the lower end of the seven-week consolidation range and the 50-day EMA, making it a crucial support. A decisive break below this zone could accelerate the downside. On the upside, immediate resistance is at 60,000 levels.

Also Read: Bajaj Broking and Ashika Institutional Market Closing Commentary

Motilal Oswal Financial Services Ltd: Indian equities rebounded on Thursday, after declining more than 2% over the past three trading sessions. Buying interest emerged in the market following positive global cues amid signs of cooling geopolitical tension over Greenland. The EU nations agreed on a framework for control over Greenland with US President Trump, post which US rolled back plans to impose additional 10% tariffs on certain European countries.

Further, there is renewed optimism over the India-US trade deal after Donald Trump’s positive comments on the agreement at the Davos Summit. Nifty50 opened on a strong note (rising 188 points from Wednesday’s close) and despite some profit booking at higher levels, managed to close 132 points higher at 25,290 (+0.5%). The broader market outperformed with Nifty Midcap100 and Smallcap100 ending with gains of 1.3% and 0.7% respectively.

Except Nifty Realty and consumer durables, all sectoral indices ended in the green, with Nifty PSU Bank emerging as the top gainer, up 2.3% on the back of strong Q3 results from Bank of India and Indian bank amongst other PSBs. Metal and Pharma indices followed with gains of over 1% each on investor buying interest.

Further, MOFSL expects market focus to shift gradually towards the Union Budget 2026 to be announced on 1st February. On the macro front, global markets would react to the US Q3 GDP and monthly Retail Inflation (CPI) data to be announced later today. Overall we expect markets to tack global cues,  macro indicators and the ongoing quarterly earnings. Key companies announcing results on Friday include JSW Steel, Shriram Finance, BPCL, Godrej Consumer, Cipla, MCX, Piramal Finance amongst others.