After a strong start to 2026, Indian equities turned lower in the first week of January, with the benchmark Nifty 50 sliding into the 25,700‑25,900 range.
Why the market corrected
Investors grew nervous about possible new U.S. tariffs, continued foreign fund outflows, and global uncertainty. Profit‑taking in big‑cap names added extra selling pressure, pushing the index below several technical thresholds.
Technical outlook for the Nifty 50
Analyst Mehul Kothari says the Nifty 50 failed to break out higher and now sits near a key support around 25,600. If the index falls below this level, the next likely target is about 25,400. Momentum is weak, but the index is approaching oversold territory, so a short‑term bounce could happen.
On the upside, any recovery will face strong resistance between 25,800 and 26,000.
Bank Nifty picture
The Bank Nifty is stuck below a resistance zone of 60,500‑61,500, which also lines up with its long‑term trend line. A recent drop has taken it toward a near‑term support around 59,000. A break below 59,000 could open the door to moves toward 58,000 or lower.
Conversely, a rise above 59,500 may trigger a brief rally, but sellers are likely to step in near 61,000‑61,500.
Stocks to consider under ₹200
Kothari highlighted two affordable shares that could benefit from the current market mood:
- SJVN: buy between ₹78‑₹76, target ₹85, stop loss ₹72.
- NMDC: buy between ₹80‑₹78, target ₹88, stop loss ₹74.
Takeaway
With the Nifty and Bank Nifty testing key support levels, a careful, selective approach is advisable. Wait for confirmation before opening new positions.
Disclaimer
These observations are for educational purposes only. They reflect the views of the analyst quoted, not a guarantee of future performance. Always do your own research or consult a qualified adviser before investing.