The Indian stock market is poised for a potentially positive opening on Friday, January 16, 2026, mirroring mixed cues from global markets. Here's a breakdown of eight key factors influencing market sentiment overnight:

1. Gift Nifty Signals Positive Start:

The Gift Nifty, an early indicator of Indian market sentiment, is trading around 25,787, a premium of approximately 68 points compared to the Nifty futures' previous close. This suggests a likely positive opening for the Sensex and Nifty 50. The Gift Nifty allows foreign investors to trade in Indian equities in a regulated offshore market. It also retains an extended-hours structure, allowing price movement well before and after Indian markets open.

2. Asian Market Overview:

Asian markets presented a mixed picture. Japan's Nikkei 225 and Topix indices experienced declines of 0.52% and 0.57% respectively, while South Korea's Kospi rose 0.26% and Kosdaq dropped 0.59%. Hong Kong's Hang Seng index futures hinted at a higher opening.

3. Wall Street's Positive Close:

The US stock market concluded Thursday on an optimistic note, rebounding after two days of losses, primarily driven by gains in bank and chip stocks. The Dow Jones Industrial Average climbed 0.60%, the S&P 500 increased by 0.26%, and the Nasdaq Composite rose 0.25%. Nvidia shares saw a gain of 2.10%, and AMD shares rose 1.93%.

4. Rupee Movement:

Details regarding the rupee's overnight movement were not available in the provided context.

5. US Dollar Trends:

The dollar index, which measures the greenback against a basket of currencies, was range bound after losing 0.25% overnight.

6. Gold and Silver Prices:

Conflicting information exists regarding gold and silver prices. One source indicates that gold broke above $4,600 an ounce before steadying at $4,582. Another source indicates a fall in gold and silver prices.

7. Technical Outlook for Nifty 50:

The Nifty 50 formed a small green candle on the daily chart with a long upper shadow. Technically, this market action indicates a narrow range movement in the market within 25,900 - 25,600 levels with volatility. Though, Nifty 50 is finding crucial support around 25,500 - 25,600 levels, but was not able to surpass the crucial hurdle of 25,900 - 26,000 levels on the way up.

8. Market Sentiment and Trading Strategy:

Experts suggest a cautious trading approach, recommending selective accumulation on declines, as broader macroeconomic and geopolitical uncertainties continue to shape market sentiment. For day traders, a "buy on dips and sell on rallies" strategy is considered ideal. Key support zones for the Nifty 50 are identified at 25,650 and 25,600, while immediate resistance areas are around 25,900-25,950.

Additional Factors:

• The Indian stock market was closed on Thursday due to municipal corporation elections in Maharashtra.
• Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks, while Domestic Institutional Investors (DIIs) were net buyers.
• Ongoing earnings reports, developments related to the India-US trade deal, and cues from the upcoming Budget are expected to influence market direction.