Motilal Oswal Financial Services Ltd: Indian equities resumed its downward trajectory after witnessing a small recovery on Thursday. Nifty fell by 241 points (-1%) to close just above the 25k levels at 25,048, dragged by sharp decline in several heavyweights. Stock specific action continued on the back on mixed Q3 results so far. The broader markets underperformed with nifty Midcap100 and Smallcap100 down 1.8% and 2%, respectively, as investors adopted a cautious stance amid overall market weakness.

On the sectoral front, Realty emerged as the top loser (-3.3%), extending its sharp correction for the week, the Realty index declined 9.2% over the week, marking its steepest weekly fall in nearly 11 months, as concerns around slowing housing sales amidst weak demand weighed on sentiment. Nifty IT was relatively resiliently with marginal loss of 0.2%, supported by strong U.S. dollar. On the macro front, markets will closely monitor the U.S. Consumer confidence data to be announced on Tuesday further, the U.S. Fed interest rate decision and the Union budget 2026 will remain the key market triggers next week.

Overall, Markets will continue to track developments around global trade negotiations and geopolitical dynamics, while stock-specific action is expected to remain driven by ongoing Q3 earnings announcements. Key companies announcing results over the weekend are Kotak Mahindra Bank, Ultratech cement, Axis Bank and on Tuesday Tata consumer, Asian paints among others.

Bajaj Broking Research

The market failed to build on the previous session’s sharp rebound and closed lower on January 23, with volatility persisting and widespread selling emerging amid a weaker rupee and continued FII outflows.

At the close, the Sensex declined 769.67 points (0.94%) to 81,537.70, while the Nifty fell 241.25 points (0.95%) to 25,048.65. For the week, both the Sensex and the Nifty registered losses of around 2.5% each.

Selling pressure was broad-based, with all sectoral indices ending in the red. Capital goods, power, realty, PSU banks, and media stocks bore the brunt, shedding 2–3% as investors adopted a cautious stance and reduced exposure across the board.

The broader market underperformed the benchmarks, with the midcap index sliding 1.8% and the small-cap index dropping 1.95%. Meanwhile, the Indian rupee remained under pressure, hitting a fresh intraday record low of 91.97 against the US dollar before settling at 91.96, weaker than the previous close of 91.62.

Nifty Outlook

Nifty on the weekly chart has formed a sizable bearish candle with a lower high and lower low highlighting continuation of downward bias for the third week in a row. Pullback attempt during the week meet with strong selling pressure as the index closed around the 52 weeks EMA.

Nifty is currently placed around the lower band of the rising channel of the last seven months which also coincides with the 52 weeks EMA placed around 25,000-24,800 levels. A breach below the same will signal extension of the decline towards 24600-24,500 levels.

Weekly stochastic is approaching oversold territory after 1400 points decline in just 14 sessions. Hence, holding above the support area of 25,000-24,800 will lead some consolidation in the range of 24,800-25,500 in the coming weeks. On the higher side 25,400-25,500 will act as immediate resistance for the coming weeks.

Bank Nifty Outlook

The Bank Nifty on the weekly chart has formed a sizable bearish candlestick pattern with a lower high and a lower low signaling corrective bias. The index closed below the 50 days EMA signaling corrective bias.

The index has generated a breakdown below last 7 weeks consolidation range (58800-60400) highlighting weakness. A follow through selling pressure will open further downside towards 57,600 and 57000 levels in the coming weeks. On the higher side 59,000 will act as immediate resistance, only a move above that will open further upside towards 59,600 levels.

Also Read: MOFSL and Bajaj Broking Market Closing Commentary for Jan 22

Ashika Institutional Equities

Indian equity markets ended lower on Friday as persistent selling pressure weighed on sentiment throughout the session. The benchmark Nifty opened at 25,344, briefly touched an intraday high of 25,347, and drifted lower to test the 25,050 level.

Sectorally, the pressure was broad-based, with all major indices ending in the red. Realty, PSU Banks, Media, and Energy stocks bore the brunt of the selling, reflecting risk-off sentiment across the market. On the macro front, the rupee slipped to a fresh all-time low of 91.95 against the US dollar, further dampening investor confidence. Additionally, stock-specific earnings-related reactions added to the downside pressure during the session.

In the derivatives segment, market breadth remained heavily skewed towards the declining side. Notable open interest buildup was observed in stocks such as Paytm, Cipla, Phoenix Ltd, Bajaj Finserv, and Lodha, indicating active positioning. In the Nifty options space, the highest call open interest was seen at the 25,300 and 25,500 strike prices, suggesting strong resistance levels, while the 25,000 strike held the maximum put open interest, acting as a key support. The Put-Call Ratio (PCR) stood at 0.58. Overall, the market closed on a weak note, with sentiment remaining fragile amid currency pressure and cautious positioning in the derivatives market.