Buy or sell: The Indian stock market slipped back into the red on Friday, January 23, as profit-taking set in amid ongoing geopolitical concerns, caution ahead of the Union Budget 2026, and mixed Q3 earnings outcomes, after posting modest gains of around half a percent a day earlier.
The Sensex tumbled 770 points, or 0.94%, to end at 81,537.70, while the Nifty 50 declined 241 points, or 0.95%, to close at 25,048.65.
“ The benchmark indices ended the week on a bearish note, with the Nifty 50 closing around 25,050 declining nearly 2.5% amid heightened volatility. Sectoral performance remained broadly weak, with metals being the sole outperformer, gaining close to 1%, while all other major sectoral indices closed in the red. Broader markets witnessed sharper pressure, as the BSE Midcap and Smallcap indices plunged by approximately 4% and 6% respectively, reflecting risk aversion. Meanwhile, the rupee slipped to a fresh record low. In a key development, the Reserve Bank of India announced liquidity infusion of over ₹2 lakh crore through multiple measures, aimed at easing financial conditions and supporting the banking system,” said Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi.
Ganesh Dongre’s market outlook for next week
Nifty 50
According to Dongre, the Nifty has slipped into an oversold zone but continues to exhibit selling pressure, hovering near a two-month low.
“ However, supportive derivatives indicators such as the Put–Call Ratio (PCR) at 0.75 suggest limited downside from current levels. The recent RBI liquidity measures could help arrest the ongoing decline in Nifty and Bank Nifty, potentially paving the way for a recovery toward the psychologically important 25,600–26,800 zone in the coming weeks, especially with the monthly expiry and the upcoming US Federal Reserve meeting. That said, uncertainty surrounding global tariff developments may cap aggressive upside, and caution is advised at higher levels. Immediate resistance for Nifty is seen in the 25,600–25,800 zone, where supply pressure is likely to emerge,” Dongre said.
Bank Nifty
On the Bank Nifty outlook, he added that immediate resistance is placed near 59,500, with the highest Call open interest at 59,500 and the highest Put open interest at 58,000.
“ Overall, the market outlook remains cautious, with a constructive bias emerging only if Nifty sustains above the 25,600–25,800 zone and Bank Nifty holds above 58,000. Traders are advised to adopt a buy-on-dips approach, remain selective, focus on relative sector strength, and closely track global cues and geopolitical developments for clearer directional signals,” said Dongre.
Weekly stocks to buy or sell
L&T Finance: Buy at ₹284-288, target price of ₹300, stop loss of ₹275.
Steel Authority of India: Buy at ₹145-148, target price of ₹160, stop loss of ₹142.
Canara Bank: Buy at ₹148-152, target price of ₹160, stop loss of ₹142.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
