Buy or sell: Frontline benchmarks Sensex and Nifty 50 closed in the red for the fifth straight session on Friday, January 9, weighed down by renewed worries over US tariffs, caution ahead of the Q3 earnings season, and persistent foreign fund outflows that dampened investor sentiment.
The Sensex tumbled 605 points, or 0.72%, to settle at 83,576.24, while the Nifty 50 slipped 194 points, or 0.75%, to finish at 25,683.30. Broader markets also saw pressure, with the BSE Midcap index falling 0.90% and the Smallcap index sliding 1.74%.
“ The benchmark Nifty 50 began the first week of 2026 with sharp profit booking following statements from the Trump administration proposing a steep 500% tariff on countries purchasing oil from Russia. This global development triggered negative sentiment across markets, with the Nifty closing the week down by 2.45% and most major sectors witnessing broad-based selling pressure,” said 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 fresh breakout support lies in the 25,500–25,600 range, suggesting the possibility of a technical rebound in the coming week.
” With midcaps and Bank Nifty also holding key support levels, a bounce towards the psychologically important 26,000–26,200 zone cannot be ruled out. However, given the prevailing uncertainty around tariff-related developments, traders should remain cautious on higher levels until clarity emerges. Immediate resistance for Nifty is placed in the 26,300–26,500 band, where supply pressure is likely to cap upside in the near term.
Derivatives data supports a range-bound yet constructive outlook, with the highest Call open interest concentrated around the 26,200–26,300 strikes, indicating strong resistance, while heavy Put open interest at the 25,500–25,600 strikes highlights a well-defined support base. Any corrective move towards this support zone is likely to attract buying interest and may offer selective stock-specific accumulation opportunities rather than signaling a broader trend reversal,” Dongre said.
Bank Nifty
Bank Nifty has also seen profit booking but continues to hold its major support near the 59,000 mark.
“ Technically, it remains well placed above the crucial 58,500–59,000 support band, keeping the broader banking structure intact, while resistance is seen in the 60,000–60,500 zone, with a stronger hurdle near 61,000. Overall, the market outlook remains positive to constructive as long as Nifty sustains above 25,600 and Bank Nifty above 58,000. While near-term resistance levels may limit immediate upside, the prevailing structure favors a buy-on-dips strategy, with traders advised to stay selective, focus on strong sectors, and closely monitor global and geopolitical cues for clearer directional triggers,” he added.
Weekly stocks to buy or sell
Infosys: Buy at ₹1600-1620, target price of ₹1670, stop loss of ₹1570.
Dr Reddy’s: Buy at ₹1200-1220, target price of ₹1260, stop loss of ₹1180.
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.
