Indian stock market: The benchmark indices, Sensex and Nifty 50, closed in the red for the fifth straight session on Friday, January 9, as fresh worries over US tariffs, cautious sentiment ahead of the Q3 earnings season, and persistent foreign fund outflows weighed on markets.
The Sensex slumped 605 points, or 0.72%, to settle at 83,576.24, while the Nifty 50 fell 194 points, or 0.75%, to end at 25,683.30. Broader markets also remained under pressure, with the BSE Midcap index down 0.90% and the Smallcap index tumbling 1.74%.
Stock market next week
Nifty 50
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty 50, the Nifty 50 opened on a weak note and extended its decline throughout the session, indicating persistent selling pressure and bearish sentiment. The index briefly breached the key support level of 25,800 and confirmed a decisive breakdown below this zone, eventually closing at 25683, which reinforces the short-term bearish bias and weakening market structure.
” Immediate resistance is placed in the 25,800–25,850 zone, while crucial support is located at 25,500–25,550.On the momentum front, the daily RSI stands at 38.55 and continues to trend lower, reflecting deteriorating momentum and lack of buying strength. India VIX edged up by 3.07 percent to 10.92, suggesting a marginal pickup in volatility and cautious market sentiment.
Derivatives data indicates heavy call writing along with strong put accumulation at the 25,800 strike, establishing this level as a key pivot and near-term hurdle for the index. As long as Nifty holds above 25,600, a selective buy-on-dips strategy may be considered, albeit with strict stop-losses placed at 25,500 to manage downside risk,” Bagadia said.
Bank Nifty
The Bank Nifty opened on a flat note and witnessed a sharp bearish move of nearly 590 points on the downside, registering an intraday low at 59,154, indicating aggressive profit booking and supply pressure at higher levels.
“ This price action suggests that the index is undergoing a short-term consolidation-to-correction phase after recent gains. Immediate resistance is placed in the 59,500–59,600 zone, while the 59,000–58,900 support band remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 47.96 and is trending lower, suggesting a loss of upward momentum and increasing caution among bulls. Despite the short-term weakness, traders are advised to maintain a bullish bias and adopt a buy-on-dips strategy near key support levels, supported by disciplined risk management with appropriate stop-loss placements to protect against deeper downside risks,” Bagadia added.
Stocks to buy
Sumeet Bagadia has recommended three stocks to buy on Monday, January 12. The three stock picks by Bagadia are – Ujjivan Small Finance Bank, NHPC and Zee Entertainment Enterprises.
1] Ujjivan Small Finance Bank: Buy at ₹59.34 | Target Price: ₹63.5 | Stop Loss: ₹57.25
2] NHPC: Buy at ₹82.43 | Target Price: ₹88.3 | Stop Loss: ₹79.5
3] Zee Entertainment Enterprises: Buy at ₹91 | Target Price: ₹97.4 | Stop Loss: ₹87.8
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.
