Snapped a three‑session losing streak. Opened with a 550‑pt gap‑up, but later trimmed gains as investors booked profits.
Nifty 50 (NSE)
25,289.90
+132 pts
+0.53 %
Closed above 25,200. Formed a high‑wave candle, signaling indecision but managed to hold gains. Immediate resistance sits near the 100‑DMA (~25,590); key support is around the 200‑DMA (~25,130).
Nifty Bank
~59,200
+0.68 %
–
Traded above all major moving averages and ended near its intraday high. Support at 59,000; resistance at 59,700–59,800 and then at 60,000.
Nifty MidCap 100
–
+1.34 %
–
Broader markets outperformed as midcaps saw strong buying.
Nifty SmallCap 100
–
+0.76 %
–
Benefited from improved risk appetite.
India VIX
~13
↓
–
Cooling volatility signalled calmer sentiment after recent turbulence.
Sectoral performance: media, PSU bank, pharma, FMCG and metal indices led gains. CPSE/PSE and PSU‑bank stocks continued their positive run. Realty and consumer‑durable indices slipped, while IT and private‑bank indices were mixed. Nifty Bank outperformed the benchmark indices.
Key statistics and breadth
Market capitalisation: Investor wealth on the BSE rose by about ₹6.6 lakh crore versus the previous close, reflecting the day’s rebound.
Market breadth: Advances outnumbered declines on both the NSE and BSE, aided by buying in mid‑ and small‑cap counters.
FII/DII activity: Foreign Institutional Investors (FIIs) have been net sellers for twelve straight sessions, pressuring valuations. Domestic Institutional Investors (DIIs) provided support through selective buying.
Derivatives positioning: Highest call open interest on Nifty 50 was at 25,500 and 26,000 strikes, while put open interest was concentrated at 25,200 and 25,000. Put–call ratio stood around 0.70. The distribution suggests a cautious bias with immediate resistance near 25,500–25,600.
Top gainers and losers (Nifty 50)
Gainers
Open (₹)
High (₹)
Low (₹)
Close (₹)
% chg
Comments
Dr Reddy’s Labs
1,195
1,225
1,187.70
1,218.60
+5.31 %
Strong quarterly results and brokerage upgrades sparked buying interest.
Bharat Electronics (BEL)
406.00
418.30
406.00
417.80
+3.76 %
Defence spending optimism drove continued momentum.
Adani Enterprises
2,055.90
2,102.90
2,051.00
2,088.20
+2.76 %
Group stocks rallied in line with the broader market; revenue growth aided sentiment.
Adani Ports & SEZ
1,400.00
1,421.70
1,388.50
1,416.10
+2.72 %
Strength in logistics/metals and easing trade concerns benefited the stock.
Tata Steel
185.89
189.99
185.79
189.40
+2.71 %
Metals rallied on hopes of improved trade relations and strong Chinese demand.
Losers
Open (₹)
High (₹)
Low (₹)
Close (₹)
% chg
Comments
Eternal Ltd.
300.00
305.00
275.05
276.50
–2.47 %
Profit‑taking after a run‑up and heavy volumes sent the quick‑commerce player lower.
SBI Life
2,056.10
2,067.10
2,009.30
2,024.90
–1.48 %
Insurance stocks remained soft amid cautious long‑term outlook.
Titan Co.
4,099.00
4,128.00
3,980.80
4,022.10
–1.40 %
Weak consumer durables sector weighed on the stock; investors booked profits.
Eicher Motors
7,175.00
7,325.00
7,026.00
7,046.00
–1.32 %
Marginal decline amid sector‑wide weakness; profit‑taking after prior gains.
Relatively resilient but ended slightly lower on consolidation in healthcare names.
What moved the market
Relief from trade worries: US President Donald Trump’s comments at Davos that a “framework of a future deal” had been agreed over Greenland and his decision to withdraw tariff threats on Europe eased fears of a trans‑Atlantic trade war. He also hinted at progress towards an India–US trade agreement. This triggered a short‑covering rally after three days of declines.
Global risk‑on mood: Asian markets ended higher—Topix (+0.9 %), S&P/ASX 200 (+0.6 %), Hang Seng (+0.2 %), Shanghai Composite (+0.4 %)—while Euro Stoxx 50 futures rose more than 1 %. US S&P 500 futures gained about 0.3 %. The risk‑on tone spilled over to Indian equities.
Corporate earnings: Better‑than‑expected quarterly results from Dr Reddy’s Laboratories, Bharat Electronics, Waaree Energies and Jindal Stainless lifted sentiment. Reports of strong profit growth at Waaree Energies (net profit up 118 %) and Jindal Stainless (net profit up 26.6 %) reinforced confidence in select sectors.
Short‑covering: With around two lakh short contracts outstanding, traders closed positions as positive global cues emerged. This was evident in the sharp rebound at the open.
FII selling tempered by domestic buying: Foreign investors remained net sellers for the twelfth consecutive session, but domestic investors absorbed supply. The rupee firmed slightly to about 91.63 per US dollar, supporting equities.
Commodities and currency: Gold and silver prices cooled after a record rally as safe‑haven demand eased. Copper futures slipped on weak demand. A firmer dollar and easing geopolitical tensions reduced demand for precious metals, pushing money back into risk assets.
Global cues
US and European markets: S&P 500 futures up ~0.3 %; Euro Stoxx 50 futures +1.2 %. Comments from US policymakers suggest tariffs on Europe are off the table for now. The Federal Reserve is widely expected to remain on hold, while US GDP and core inflation data are due later in the week.
Asia: Japan’s Topix +0.9 %; Australia’s S&P/ASX 200 +0.6 %; Hong Kong’s Hang Seng +0.2 %; Shanghai Composite +0.4 %. Investors await the Bank of Japan’s policy decision on Friday and watch for any signals on yield‑curve control adjustments.
Commodities: Gold corrected after hitting new highs; silver also eased. Copper futures fell around 1.5 % on the MCX as traders cut positions. Crude oil remained steady amid expectations that OPEC+ supply cuts will offset slower demand growth.
Currency markets: The rupee closed at around 91.63 per USD, marginally stronger than the previous close. A firmer rupee and expectations of stable monetary policy added comfort to foreign investors.
Stocks to watch
Company
Reason for focus
Eternal Ltd.
Reported robust Q3 numbers with net profit growth of ~57 % and revenue growth of 20 % YoY; shares were volatile and closed lower despite the strong earnings.
Waaree Energies
Q3 profit jumped ~26 % QoQ to ₹1,062 crore; revenue rose ~25 %; margins improved significantly. Stock rallied during the session.
Jindal Stainless
Posted 26.6 % YoY growth in net profit and marginal revenue growth; may attract continued buying in metals.
Hindustan Petroleum (HPCL)
Q3 net profit jumped over 6 % QoQ to ₹4,072.5 crore; revenue up ~14 %. Energy sector stocks remain in focus.
CAMS: net profit for the quarter rose 9.9 % QoQ to ₹125.5 crore.
Indian Bank: PAT increased 7.3 % YoY; asset quality improved.
Adani Enterprises: PAT at ₹552 crore vs ₹562 crore YoY; revenue up ~15 % YoY to ₹6,730 crore.
IIFL Finance: Strong profit growth but the stock hit the lower circuit after GST department orders totalling ₹13 crore triggered worries.
Hindustan Zinc: Shares fell over 4 % as silver prices corrected sharply.
Macro policy: Investors await the government’s Union Budget 2026‑27 due in early February. Policy signals on capex, taxation and PSU divestment could influence sectors such as infrastructure, defence and banking.
Technical outlook and expected tone for 23 January 2026
Nifty 50: The index has formed a high‑wave candle after reclaiming 25,200, signalling indecision but with a positive bias. Immediate resistance lies at 25,500–25,600, coinciding with the 100‑DMA (~25,590). A decisive break above 25,600 could trigger a move towards 25,700–25,900. On the downside, the 200‑DMA around 25,130 acts as strong support. A breach of this level may lead to a test of 24,900. Momentum indicators such as RSI have rebounded from oversold territory; however, they remain below 50, suggesting more consolidation is possible.
Bank Nifty: With the index above all major moving averages, the structure remains constructive. Support is at 59,000 and major support at 58,700. Resistances are seen at 59,700–59,800 and 60,000. Holding above 59,000 could pave the way for a breakout above 60,000.
Market tone: The overall tone for tomorrow is expected to be cautiously optimistic. Improved global sentiment and easing trade fears support further upside, but persistent FII selling, upcoming US economic data and the Bank of Japan meeting may cap gains. Traders may adopt a buy‑on‑dips strategy near support levels, while investors should remain selective, focusing on sectors with favourable earnings momentum (pharma, defence, metals, and select PSU banks). Volatility may remain subdued if India VIX continues to soften. However, any negative surprise from global events could quickly reverse sentiment.
Summary
Indian markets rebounded on 22 January 2026 after three days of declines, with the Sensex and Nifty rising nearly half a percent. Gains were driven by positive global cues following President Trump’s conciliatory comments on trade and by robust domestic corporate earnings. Sectorally, media, PSU banks, pharma, FMCG and metal stocks led the advance, while realty and consumer durables lagged. Although foreign investors continued to sell, domestic buying and short‑covering supported the rally. For the next session, indices may consolidate below key resistance levels; sustained trade above 25,300 on the Nifty and 59,000 on the Bank Nifty would maintain the constructive bias.
