Buy or sell: The Indian stock market posted solid gains on Friday, January 2, driven by broad-based buying across sectors and rising optimism ahead of the Q3 earnings season. The Sensex advanced 573 points, or 0.67%, to close at 85,762.01.
Meanwhile, the Nifty 50 touched an all-time high of 26,340 during intraday trade before easing slightly to end at a record closing level of 26,328.55, up 182 points or 0.70%. The broader markets also performed well, with the BSE Midcap index gaining 0.97% and the Smallcap index rising 0.79%.
“The Nifty 50 ended the week on a strong note, gaining 1.10% to close at 26,328, supported by positive global cues and broad-based buying across sectors. Broader markets outperformed the benchmark, with key indices advancing between 3–6%, reflecting healthy market participation. Among sectoral performers, the Metal index led the rally with a sharp 6.3% gain, while Oil & Gas, Automobile, Banking, and Power sectors posted solid gains of around 3–4% each, highlighting widespread strength across the market,” said Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi.
Ganesh Dongre’s market outlook for next week
Nifty 50
According to Dongre, Nifty decisively broke above the long-standing resistance zone of 26,000–26,300 and managed to sustain above this crucial psychological level on a weekly closing basis.
“The index had earlier formed a strong base around 25,600–25,700 and consistently traded above this support throughout the week, eventually closing near the 26,300 resistance zone. On the monthly chart, Nifty is forming a constructive higher-high structure, indicating a positive outlook for the coming months. Fresh support is now placed at 25,800–25,900, while immediate resistance is seen at 26,600, followed by the 27,000 level. For the near term, Nifty is expected to trade within a new range of 25,700–26,600, with a decisive breakout above 26,600 likely to trigger the next leg of the rally toward 27,000,” Dongre said.
Bank Nifty
Bank Nifty also remained firmly bullish, ending the week with a gain of 1.93% and closing above the 60,000 mark, while registering a fresh 52-week high at 60,150.
On the Bank Nifty outlook, he added, “ The index continues to find strong support in the 58,000–58,500 zone, with immediate resistance placed near 61,000. Strength was visible across both PSU and private banking stocks, reinforcing the positive trend in the banking space.”
Trading strategy for next week
Dongre further said that market sentiment remains constructive, with momentum expected to stay intact as long as Nifty holds above 25,600 and Bank Nifty sustains above 58,000.
He recommended traders to continue to adopt a disciplined buy-on-dips approach in selective stocks, while keeping a close watch on global developments and geopolitical cues for further directional clarity.
Weekly stocks to buy or sell
Steel Authority of India: Buy at ₹145-150, target price of ₹160, stop loss of ₹140.
Indian Energy Exchange: Buy at ₹130-135, target price of ₹148, stop loss of ₹125.
HCL Technologies: Buy at ₹1635-1640, target price of ₹1700, stop loss of ₹1600.
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.
