Indian stock markets are expected to open cautiously on Friday, January 16, 2026, after a trading holiday on January 15 due to municipal corporation elections in Maharashtra.
Market Overview
The Gift Nifty on the NSE IX traded lower by 4 points, or 0.02 percent, at 25,781, signaling a muted start for Dalal Street. On Wednesday, the Sensex and Nifty 50 extended their decline, influenced by concerns over potential U.S. tariffs and continuous foreign investor outflows, overshadowing gains in metal and banking stocks. The BSE Sensex decreased by 245 points, or 0.29%, closing at 83,382.71, while the Nifty 50 slipped by 66.7 points, or 0.26%, to close at 25,665.60.
Global and Domestic Factors
Mixed global cues are expected to influence the Indian stock market. Asian stocks are heading for their longest weekly winning streak since May, driven by technology shares and increased investment in artificial intelligence. Market sentiment is guarded due to persistent foreign fund outflows and uncertainty surrounding the India-US trade deal. Investor nervousness is also influenced by the expected U.S. Supreme Court ruling on the legality of tariffs imposed by the Trump administration, which could affect global trade flows.
Gold and Silver Prices
Gold and silver prices are currently experiencing a dip. The drop in gold prices occurred after the U.S. dollar hit a six-week high due to unexpectedly low jobless claims. A softer stance on Iran by Donald Trump has also reduced the safe-haven appeal of gold. Spot silver prices experienced volatility, dropping to $86.25 before rebounding above $90.
Technical Analysis and Market Outlook
According to Hitesh Tailor, Technical Research Analyst at Choice Broking, the Sensex held firmly above the key support zone of 82,900 – 83,000. The resistance band of 83,800 – 83,900 remains a near-term hurdle for the Sensex. The short-term structure indicates a cautious trading approach with selective accumulation on declines due to broader macroeconomic and geopolitical uncertainties. The Nifty 50 formed a small green candle on the daily chart with a long upper shadow, indicating a narrow range movement between 25,900 and 25,600 with volatility.
Sumeet Bagadia, Executive Director at Choice Broking, noted that the Nifty 50 is trading in the 25,500-25,800 range and maintains a cautious to negative outlook due to FII selling and macro uncertainties. Immediate resistance is located around 25,750–25,800, while key support is positioned near 25,500–25,550. Experts suggest that 25,600 is a crucial support level for Nifty, while resistance lies in the 25,750 to 25,800 zone.
Stocks in Focus
Several stocks are expected to be in focus based on recent news and third-quarter earnings, including Reliance Industries (RIL), Wipro, Jio Financial, and Infosys.
Sectoral Performance
On Wednesday, sectoral performance was mixed. Metal stocks outperformed, with the Nifty Metal index jumping 2.7%. PSU bank stocks also showed strength, with the Nifty PSU Bank index gaining 2.1%. IT stocks fell 1.1%, while realty declined 0.8%.
