Stock market news: The domestic benchmark indices, Nifty 50 and Sensex are set to open higher on Wednesday following a sharp selloff in the previous session that dropped them to their lowest levels in over three months. Factors such as global trade issues, geopolitical tensions, mixed earnings reports, and ongoing foreign outflows contributed to this decline.
As of 8:01 IST, Gift Nifty futures were trading at 25,265.5 points, suggesting that the Nifty 50 might begin the session slightly above Tuesday’s closing figure of 25,232.50.
On Tuesday, the Nifty 50 and Sensex experienced declines of approximately 1.4% and 1.3%, respectively, marking their largest single-day percentage loss in over eight months and resulting in their lowest closing positions in more than three months.
Market Outlook by Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities
Nifty 50
Nifty 50 has broken the previous swing low of 25,473 levels and with that it confirms the next leg down which will taken the Index to 25,000 levels which is the next support on the lower side. Now, on the upside 25,500 and thereafter 25,700 will act as a critical resistance and until these levels are not taken off the short-term trend will be lower. The broader markets have also corrected quite sharply with Nifty Midcap Select also breaking its critical 13,500 support and below that the next target comes to 13 ,000 and 12,800 levels.
The BankNifty below 59,500 has no major support until 58,500 whereas Nifty Financial Services has broken down from its critical support of 27,300 levels and below this the target on the lower side 26,800, so the overall trend across the market is down, hence bounce should be utilised as a selling opportunity. As per the options data, 25,500 strike now has the highest call base whereas 25,000 strike has the highest put base, so the immediate range is 25,000-25,500, so a bounce from 25,000 can’t be ruled out, however, if 25,000 also breaks then the next crucial support will be 24,700 levels. The max pain is also at 25500 levels, so from hereon until 25,500 level is not taken off there will be no indication of a trend reversal.
Stocks To Buy in the near-term – Jay Thakkar
Jay Thakkar of ICICI Securities recommends Info Edge (India) Ltd (Naukri) Futures, Hindustan Zinc Ltd Futures, and Fortis Healthcare Ltd Futures.
Sell Naukri (Info Edge) Futures in the range of ₹1,310-1,290; stop loss at ₹1,340; Targets ₹1,230 and ₹1,200
Naukri has broken the range on the lower side with increase in open interest indicating that the stock is now witnessing some short additions. The previous fall was on account on long unwinding and thereafter the stock consolidated in a narrow range and it has now finally broken the range on the lower side, hence the risk: reward is quite optimal at the current levels.
There have been aggressive call additions right from ₹1,300-1,400 strikes as compared to puts on the lower, so the PCR is 0.54 which is bearish. Now, until ₹1,340 levels are not taken off on a closing basis the short-term trend is quite bearish in this stock.
Buy Hind Zinc Futures in the range of ₹675-680; stop loss at ₹648; Targets ₹710-725
Hind Zinc has been forming higher tops and bottoms with increasing volumes as well as open interest indicating long built. There is no major hurdle until ₹700 levels as ₹700 strike has the highest call base however on the lower side there is a good put base from ₹660-640 strikes as well indicating strong support on the lower side. The bull run in the silver is also quite positive for this stock, hence the short to medium term outlook is positive.
Sell Fortis Futures in the range of ₹865-870; stop loss at ₹890; Targets ₹850-840
Fortis has broken its crucial support on the lower side after having bounced back and retraced 38.2% of its previous fall, the stock has broken the uptrend line support as well as witnessed significant call additions on the higher side at 900 strike, so that is the short-term resistance whereas ₹850 and ₹840 strikes have witnessed put additions, so they will act as a short-term support. The strategy is to sell on rise for the targets of ₹850 and ₹840 on a conservative basis.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 20/01/2026 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
