Market Wrap

Indian equity markets witnessed a sharp intraday reversal on 13 January 2026, with early selling pressure giving way to strong buying momentum in the second half of the session. In a highly volatile trade, bulls regained control, helping the Nifty close near the 25,800 mark, up 0.35%, and break its recent losing streak.

Sectorally, Nifty Metal continued to outperform, rising over 2% after taking support near its 20-DEMA. The index continues to maintain a higher-top, higher-bottom structure, suggesting that the broader uptrend remains intact. Strength in metal stocks also lifted broader market sentiment, supported by selective short covering and value buying at lower levels.

Global cues were largely supportive. Asian markets witnessed broad-based buying and strong momentum, while European equities traded on a muted note. Germany’s DAX stood out, gaining over 0.5%. From a macro lens, markets are increasingly factoring in expectations of softer global monetary conditions later in the year, while stable commodity prices and improving risk appetite have offered near-term comfort to equities.

What's Ahead

Looking forward, market participants will closely monitor global inflation data, US bond yield movements, and commentary from central bank officials, all of which could shape near-term risk sentiment. On the domestic front, attention will shift toward corporate earnings announcements and sector-specific cues, particularly from metal, capital goods, and banking stocks.

Technically, if the Nifty manages to hold above key support levels and global cues remain favorable, further recovery cannot be ruled out. However, volatility is likely to persist, making the market increasingly stock-specific in the sessions ahead.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 snapped its five-session losing streak to close higher at 25,790.25, forming a strong intraday recovery after early weakness, which reflects value buying in an oversold zone. Despite the rebound, the index continues to trade below its 20-day and 50-day EMAs, indicating that the broader trend remains cautious. However, the RSI moving above 40 suggests improving momentum and a possible short-term relief rally. Sustaining above the immediate support zone of 25,572–25,441 will be crucial for stability, while a decisive move above 25,997 could open the door for a test of 26,128. Failure to hold supports may revive selling pressure.

Bank Nifty

BANK NIFTY closed at 59,450.50, extending its intraday recovery and signaling renewed buying interest after early weakness. The index is showing improving momentum, with the RSI moving above 50, indicating strengthening bullish undertones in the near term. Price action suggests that dips are being bought into, particularly near lower levels. Immediate support is placed at 59,049, followed by 58,801, which should act as a strong demand zone. On the upside, a sustained move above 59,852 may pave the way toward 60,100, where supply pressure could emerge.

Nifty Financial Services

FINNIFTY ended higher at 27,518.50, supported by strong participation from NBFCs and PSU financials, pointing to improving sectoral sentiment. The index is attempting to build a base after recent consolidation, and as long as it holds above the support zone of 27,331–27,216, the bias remains mildly positive. A breakout above the immediate resistance of 27,706 could strengthen upside momentum and lead to a retest of 27,821. However, selective profit booking in heavyweight NBFCs could keep the index range-bound in the short term.

Sensex

The SENSEX closed higher at 83,878.17, reflecting broad-based buying and a continuation of recovery from lower levels. The index structure remains constructive as long as it sustains above the key support band of 83,145–82,704, which has emerged as a strong demand zone. Upside momentum could accelerate if the index manages to decisively cross 84,572, opening room toward 85,013. Until then, the market is likely to witness stock-specific action with intermittent volatility, driven by sectoral rotation and global cues.