Trade Set-up for January 8: Indian indices are expected to open on a cautious note on Thursday, January 8, amid mixed signals from Asian markets.
Early trends from Gift Nifty also suggest a weak start to the session, with the index trading at 26,184—down about 42 points or 0.16% from its previous close.
“With both the Nifty and Bank Nifty holding key support levels but encountering stiff overhead resistance, market sentiment remains cautious amid elevated geopolitical tensions, renewed tariff-related concerns, and continued foreign portfolio outflows. Against this backdrop, the broader market is likely to open flat to range-bound, tracking mixed cues from global markets,” said Ponmudi R, CEO of Enrich Money.
On Wednesday, January 7, benchmark indices Sensex and Nifty 50 extended their decline for a third consecutive session, tracking mixed global cues.
The Sensex fell 102 points, or 0.12%, to end at 84,961.14, while the Nifty 50 slipped 38 points, or 0.14%, to close at 26,140.75. However, broader markets outperformed, as the BSE Midcap and Smallcap indices rose 0.47% and 0.12%, respectively.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
The Sensex witnessed intraday volatility on Wednesday and ended the session on a cautious note, reflecting consolidation at higher levels after the recent up move. The index faced selling pressure near the upper end of the range, leading to choppy moves and indicating a pause in momentum rather than a decisive reversal, according to Aakash Shah, Research Analyst, Choice Equity Broking Private Limited.
Sharing his technical view, Shah said, ” On the technical front, immediate resistance for the Sensex is placed near 85,400–85,500, while support is seen around the 84,400–84,500 zone. A stronger base continues to lie near 84,200, which is expected to act as an accumulation area for positional traders if tested. Sectorally, IT and Consumer Durable stocks outperformed. and emerged as top gainers, reflecting selective buying interest, while Auto and Infrastructure stocks remained under pressure, weighing on overall market momentum. The broader tone of the market remains cautious, with consolidation likely in the near term.”
Nifty 50 Prediction
Ponmudi R, CEO of Enrich Money, believes that the recent two to three sessions of profit booking appear to have stabilized, with the Nifty 50 index forming a neutral Doji-type candle, indicating indecision but also a recovery from lower levels.
” Nifty tested an intraday low near 26,050, which acted as a base support and aligned closely with the 20-day EMA around 26,086, from where a technical rebound emerged.
The recovery enabled the index to close above 26,200, which now acts as an immediate resistance zone. A sustained breakout above 26,200 is required to revive bullish momentum and open the path towards 26,300–26,400, followed by 26,500 on strong follow-through.
On the downside, the 26,050-26000 level continues to act as a key psychological and technical support. A decisive break below this zone could trigger a short-term corrective move towards the 25,900–25,800 range. Until a clear directional breakout occurs, Nifty is likely to remain in a consolidation phase with a mildly cautious bias,” Ponmudi said.
Bank Nifty
Bank Nifty closed near the 60,000 mark, forming a hammer-type candle, indicating buying interest emerging from lower levels, on Thursday, January 8.
“ Strong demand was observed in the 59,700–59,800 support zone, leading to a recovery during the latter half of the session. However, the index continues to face supply pressure at higher levels, resulting in a close below key resistance areas. The near-term structure remains sideways to mildly weak. A sustained breakout above 60,150 is essential to confirm trend recovery and open further upside toward 60,300–60,500 and higher. Conversely, a decisive break below 59,800 could accelerate weakness towards the 59,600 region,” Ponmudi added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
