Indian stock market indices, the Nifty 50 and the Sensex, are expected to begin trading on January 28, 2026, on a positive note, influenced by mixed global cues and optimism surrounding the India-EU trade agreement.

Global and Domestic Cues:

• GIFT Nifty: Trends on the GIFT Nifty indicate a positive opening for the Indian benchmark index, trading around 25,442, a premium of approximately 60 points from the Nifty futures' previous close. At 6:45 AM, the GIFT Nifty index futures was trading at 25,458.5 levels, up by 283 points or 1.12 per cent.
• Global Markets: Asian markets exhibited mixed trading patterns.
• India-EU Trade Deal: Positive sentiment surrounds the finalization of the India-European Union Free Trade Agreement (FTA). Under the deal, India will cut or remove tariffs on 96.6% of traded goods, while the EU will reduce tariffs on 99.5% over seven years.

Market Performance on January 27, 2026:

On Tuesday, January 27, 2026, the Indian stock market closed higher, propelled by buying trends in financials, IT, and metals, though selling pressure in auto and FMCG stocks limited gains.

• The Nifty 50 closed at 25,175.40, a gain of 126.75 points or 0.51%.
• The Sensex closed at 81,857.48, up by 319.78 points or 0.39%.
• The Nifty experienced a 300-point swing during the monthly expiry session.
• Axis Bank, Adani Ports, and NTPC were among the top gainers.
• M&M, Kotak Mahindra, and Asian Paints were among the top losers.

Technical Outlook:

• Nifty 50: The underlying trend of Nifty 50 seems to have reversed up from the support of 24,900, with the next resistance around 25,500. Immediate support is at 25,150 levels. A decisive breakout above 25,500 is needed to change the bearish view.
• Sensex: Near-term support levels are at 80,822/80,256, and resistance levels are at 82,651/83,217.

Market Analysis and Expectations:

• Analysts suggest a 'sell-on-rise' strategy until the Nifty decisively breaks above 25,500.
• Volatility is expected to remain high due to the upcoming Union Budget and volatile global markets.
• A cautious-to-positive start is expected, with selective buying in banking and heavyweight stocks.
• Sustained FII selling may restrict sharp upside, while consistent DII buying could offer downside support.

Stocks to Watch:

Mehul Kothari from Anand Rathi Shares and Stock Brokers recommends buying Chennai Petroleum, Oil India, and Punjab National Bank (PNB).

Other Factors:

• Pre-Budget positioning, sustained FII outflows, pressure on the rupee, and geopolitical tensions may restrain risk appetite.
• Silver prices in India are trading close to record highs, with silver priced at Rs. 370 per gram.