Trade Set-up for January 2: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open muted on Friday, January 2 amid thin trade as most global markets were closed yesterday.
The trends on Gift Nifty indicated a flat but positive start for the Indian benchmark index. The Gift Nifty was trading at 26,314, up 23 points or 0.09% from the Nifty futures’ previous close.
In the previous session, benchmark indices Sensex and Nifty 50 closed on a mixed note on the first trading day of calendar year 2026, as investors focused on stock-specific moves in the absence of fresh market triggers. The Sensex eased 32 points, or 0.04%, to close at 85,188.60, while the Nifty 50 edged up 17 points, or 0.06%, to settle at 26,146.55. Markets are likely to continued seeing stock-specific moves, keeping the benchmark indices confined to a range. The market is staying in a range amid a lack of fresh triggers, as investors await Q3 results and updates on India-US trade talks.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
As the new year begins, analysts see room for further upside in the Sensex, as long as crucial support levels remain intact and buying interest persists.
Sharing his technical view, Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the benchmark is displaying positive technical signals. “On the daily charts, the Sensex has formed a promising reversal pattern, and a long bullish candle supports the potential for a further uptrend from the current levels,” he said. Chouhan added that 85,000 and 84,800 are immediate support zones, and as long as the index trades above these levels, bullish sentiment is likely to stay intact, with upside potential toward 85,800 and even 86,100, while a decisive move below 84,800 could make the trend vulnerable.
Nifty OI Data
As markets look ahead to the new year, analysts believe subdued volatility and supportive derivatives positioning could provide a stable base for further upside. With risk indicators remaining calm, traders are closely tracking signals from the options market to gauge whether the recent strength can sustain into early January.
Commenting on the setup, Aakash Shah, Research Analyst at Choice Equity Broking, said, “Volatility remained subdued, with India VIX staying in the low zone, reflecting stable near-term expectations. Derivatives data showed unwinding of call positions near 26,000 and fresh put writing at higher strikes, reinforcing the breakout and suggesting a positive bias heading into early January.”
Nifty 50 Prediction
As markets look ahead to the next phase of the move, analysts believe the Nifty is nearing a critical juncture where a breakout from consolidation could set the tone for the near term. With the index hovering close to key resistance levels, the coming sessions are expected to be decisive for directional clarity.
Offering a constructive outlook, Ajit Mishra, SVP–Research at Religare Broking, said, “We expect the Nifty to gradually emerge from the prevailing consolidation phase, and a decisive breakout above the 26,200 level could pave the way for a move towards the 26,500–26,700 zone in the near term.” He added that traders should maintain a positive bias, adopt a buy-on-dips strategy, and prefer banking, auto and metal stocks, while sticking to disciplined risk management.
Echoing a similar view, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said the broader trend remains supportive despite near-term resistance. “After forming a higher bottom reversal pattern at 25,878, the Nifty is expected to move higher and break decisively above the 26,200 hurdle after one to two sessions of consolidation,” he said, adding that immediate support lies at 26,050, while a breakout could open the door toward 26,300–26,400 in the near term.
Bank Nifty Prediction
As markets look toward the next leg of the move, banking stocks remain in focus, with technical indicators pointing to sustained strength in the near term. Analysts say the Bank Nifty’s ability to hold key support levels will be critical in extending the current uptrend.
Commenting on the setup, Om Mehra, Technical Research Analyst at SAMCO Securities, said, “Nifty Bank ended the session at 59,711.55, gaining 0.22%, as the index extended its bullish trajectory after the pullback from the all-time high near 60,114.30.” He added that the index continues to trade above all key moving averages, with the RSI back above 60 and a bullish MACD crossover supporting momentum.
Mehra also noted that downside pressure remains limited. “Any minor correction toward the 59,450–59,500 zone is being absorbed, with 59,450–59,400 acting as a key support area,” he said, adding that 59,850 remains the immediate hurdle, followed by 60,000, while pullbacks toward support could offer accumulation opportunities as the trend stays bullish.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
