Sensex, Nifty slip after two days, IT stocks top losers; what's next?

Sensex, Nifty today: Benchmark indices snapped two sessions of gains amid selling pressure in IT stocks and negative global cues on Monday. Nifty closed 78 points lower at 26,250. Sensex too fell 322 points to close at 85,439. The BSE IT index crashed 507 points to close at 36,629 and BSE oil & gas index fell 341 pts to 28,568.

Major IT players such as Tata Consultancy Services (TCS) and HCL Technologies are scheduled to announce their Q3 FY26 results on January 12. On the other hand, BSE consumer durables index capped losses, ending 758 pts higher at 61,239. IT stocks crashed as brokerages signalled a weak show in the upcoming earnings season for Q3. 

HDFC Bank emerged as top loser on the Sensex, falling 2.35% to Rs 977.70 followed by Infosys (2.09%), HCL Technologies (2.08%), Bajaj Finance (1.21%), TCS (1.09%) and Reliance Industries (0.94%). BEL (2.65%), HUL (1.62%), Tata Steel (1.56%) were the top Sensex gainers. 

Overall, of the 4,470 stocks actively traded BSE stocks, 1723 closed higher, 2543 declined, and 203 remained unchanged. At the end of session, 209 stocks touched their 52-week highs, while 144 fell to 52-week lows. Meanwhile, 13 stocks hit their upper circuits and 12 ended at their lower circuits.

Bank Nifty ended 107 pts lower at 60,044.  In the previous session, the index hit a record high of 60,203. 

Rupak De, Senior Technical Analyst at LKP Securities said, "The near-term trend remains strong, as the Nifty closed above the recent breakout level. Momentum indicators such as the RSI and key moving averages continue to maintain positive positioning. On the downside, support is placed in the 26,170–26,200 zone; a decisive break below 26,170 may trigger a corrective move towards 26,000. On the upside, resistance is placed in the 26,370–26,400 zone."

Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm said, "The 26,300–26,350 band now stands as a key overhead resistance; a decisive and sustained breakout above this range could revive bullish momentum and open the path toward 26,500 in the near term. On the downside, a clear break below 26,200 may invite a corrective move toward 26,050–26,000." 

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities  said, "Profit booking has emerged from the new highs in the mid to later part of the session and Nifty closed the day lower with minor recovery note. A reasonable red candle was formed on the daily chart with minor upper and lower shadow. Technically, the market is placed at the crucial support zone as per the concept of change in polarity. The recent breakout of hurdles remains valid and Nifty is expected to bounce back from the lows in the short term."

Meanwhile, the Indian rupee extended its slide for the fourth consecutive session tracking Asian peers and pressured by dollar demand around the Reserve Bank of India's reference rate.The rupee ended at 90.2775 per dollar against 90.1975 on Friday

Previous session 

Nifty hit a record high on Friday. The 50-stock index rose to a fresh high of 26,340. Later, Nifty closed 182 pts higher at a record level of 26,328. Sensex too gained 573 points to close at 85,762.