Market Wrap

Indian equity markets staged a sharp intraday comeback on 13 January 2026, shaking off early weakness to end the session on a positive note. After opening under selling pressure, strong buying interest emerged in the latter half, driving a broad-based recovery. The Nifty reclaimed momentum, snapping its recent losing streak and closing near the 25,800 mark, up 0.35% for the day.

Sectorally, metal stocks led the charge, with the Nifty Metal index rising over 2%. The index found support near its 20-DEMA, and its higher-top, higher-bottom formation suggests the broader uptrend remains intact. The rally was aided by selective short covering and value buying at lower levels, which also helped improve broader market sentiment.

Global cues were mildly supportive. Asian markets witnessed strong gains on broad-based buying, while European equities traded mixed. Germany’s DAX stood out, advancing over 0.5%, even as overall risk appetite remained cautious. On the macro front, expectations of softer global monetary conditions later in the year, coupled with stable commodity prices, provided near-term relief to equities.

What's Ahead

Markets will now turn their attention to key global inflation data, movements in US bond yields, and commentary from central bank officials, all of which could shape near-term risk sentiment. On the domestic front, focus will shift to corporate earnings announcements and sector-specific guidance, particularly from metal, capital goods, and banking stocks.

If global cues remain supportive and the Nifty sustains above crucial support levels, a further recovery cannot be ruled out. That said, 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 ended marginally lower at 25,732 after a volatile session, despite a strong opening above the 50-day EMA. Intraday selling dragged the index toward the 25,600 zone before a modest recovery into the close, indicating dip-based buying but with limited conviction. The narrowing gap between the 20-day and 50-day EMAs signals fading upside momentum, while the RSI sliding toward the 40 mark reflects weakening strength and cautious sentiment. Going ahead, the 25,600–25,550 zone remains a crucial support area, while any sustainable recovery would require a decisive move back above 25,900–26,000. Until then, the index may remain range-bound with a negative bias.

Bank Nifty

Bank Nifty closed slightly higher at 59,578, showing relative resilience compared to the broader market. Technically, the index opened above the 20-day EMA, slipped below it intraday, but managed to reclaim and close above the average an encouraging sign for short-term stability. The RSI recovering to around 55 suggests improving momentum and the potential for gradual upside continuation. Immediate support lies near the 59,200–59,000 zone, while a sustained move above 59,800 could open the door for a retest of the 60,200–60,500 resistance band in the near term.

Nifty Financial Services

FINNIFTY ended higher at 27,586, supported by selective buying in banking and financial heavyweights, though overall breadth remained slightly negative. Technically, the index is showing consolidation after recent gains, indicating a pause rather than outright weakness. Momentum indicators suggest a neutral-to-positive setup, with immediate support placed near 27,350–27,300. A breakout above the 27,750–27,800 zone would be required to revive bullish momentum, while failure to hold supports could lead to further sideways movement.

Sensex

The Sensex closed lower at 83,627, weighed down by selling in select heavyweight stocks, mirroring the cautious tone seen in the Nifty. From a technical perspective, the index is witnessing profit-taking near higher levels, with momentum indicators softening. As long as it holds above the 83,200–83,000 support zone, the broader structure remains intact; however, a decisive break below this area could invite deeper corrective pressure. On the upside, resistance is placed near 84,200–84,400, and a breakout above this zone would be needed to re-establish bullish traction.