Stock market today: Gift Nifty up 75 points; key levels for Nifty, Sensex & Nifty Bank

Indian equity benchmark indices are likely to start 2026 on a positive note on Thursday, building on the previous session's gains, with auto stocks in focus ahead of December sales data. Liquidity is expected to be thin, with most global markets closed for the New Year holiday.

Nifty futures on the NSE International Exchange traded 75.20 points, or 0.29 per cent, down at 26,371.50, hinting at a muted start for the domestic market on Thursday. Major Asian stock markets including Japan, South Korea and Hong Kong were closed on Thursday, January 01 on the account of the new year.

There are no major fireworks expected but optimism is likely to greet Dalal Street, said Prashanth Tapse, Senior VP (Research), Mehta Equities. "We begin the year with our usual focus on charts, derivatives, fundamentals and sentiment, Volatility may remain elevated amid the release of December auto sales data and continued FII selling of Rs 3,597.40 crore," he said.

Wall Street indexes closed lower on Wednesday, echoing their world counterparts amid light trading on the last day of 2025. The S&P 500 lost 50.74 points, or 0.74 per cent, to 6,845.50 points, while the Nasdaq Composite shed 177.09 points, or 0.76 per cent, to 23,241.99. The Dow Jones Industrial Average fell 303.77 points, or 0.63 per cent, to 48,063.29.

The dollar index rose 0.01 per cent to 98.25. In cryptocurrencies, bitcoin fell 0.70 per cent to $87,581.56. Spot gold fell 0.78 per cent to $4,312.39 an ounce, while spot silver dropped 7.1 per cent to $71.04 per ounce.

Crude oil prices slid as oversupply concerns offset geopolitical risks, registering their biggest annual drop since 2020. US crude fell 0.91 per cent to settle at $57.42 per barrel, while Brent settled at $60.85 per barrel, down 0.78 per cent on the day.

Market sentiment was primarily driven by domestic policy developments and stock-specific action, said Ajit Mishra, SVP of Research at Religare Broking. "We maintain a positive yet cautious outlook on the index and recommend a sector-specific approach, with a preference for banking, auto and metal stocks, while remaining selective in other sectors."

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,597.38 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 6,759.64 crore on a net-net basis. FPIs offloaded Indian shares worth Rs 1.66 lakh crore in the whole 2025.

Nifty50 & Sensex outlook

Nifty50 has formed a promising reversal pattern, and a long bullish candle supports the potential for a further uptrend from the current levels. 26,000/85,000 and 25,950/84,800 would act as immediate support zones for traders, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

"As long as the market trades above these levels, the bullish sentiment is likely to continue, with the market potentially reaching 26,250/85,800, Further upside could also push the market up to 25,350/86,100. On the flip side, below 25,950/84,800, the uptrend would become vulnerable. Below this level, traders may consider exiting their long positions," he said.

A doji formation followed by a sharp rise, reflected through a visible green candle, signals the possibility of more gains ahead on the daily charts. The index has reclaimed the 21 EMA after reversing from a brief dull phase, said Rupak De, Senior Technical Analyst at LKP Securities.

"Although the trend is not decisively bullish yet—unlike the Bank Nifty, which has given a clear breakout—the current recovery may continue in the near term. On the upside, the index could move towards 26,315, while 26,100 may act as the initial support," he said.
 

Nifty Bank outlook

The previous swing high zone of 59,800-59,900 will act as an immediate resistance for the Nifty Bank, said Sudeep Shah, Vice President of Technical and Derivatives Research at SBI Securities. "Any sustained move above the 59,900 level could lead to an extension in the pullback move in it until 60,200 level, followed by 60,500. On the downside, the 20-day EMA zone of 59,200-59,100 will act as a strong support.'

Nifty Bank has formed a bullish candle and has broken above the upper band of its channel, indicating a continuation of the positive bias on the daily charts. This breakout suggests further upside potential, with the index likely to move towards its all-time high zone near 60,100 in the near term, said Bajaj Broking.

"Failure to sustain above Wednesday’s high could lead to a phase of consolidation, with it likely to trade in the 59,500–60,000 range. Any dip towards this zone should be viewed as a buying opportunity, given the broader positive structure. The trend remains bullish as long as key support levels are held. Only a decisive breakdown below support would signal a corrective phase," it added.