Market Wrap

Indian equities extended their rebound for a second straight session on January 23, riding on strong global cues and improving geopolitical sentiment. The Nifty opened with a gap-up above the previous session’s high, tracking firm signals from GIFT Nifty, and built on the momentum in early trade. While intraday movement turned choppy later, the index held its ground and settled around the 25,300 mark, up nearly 0.53%.

A key technical highlight was Nifty reclaiming its 200-day moving average near 25,165 — a level that now turns into a crucial support zone between 25,168 and 25,120. PSU bank stocks once again stood out as leaders, continuing their recent outperformance, while broader markets paused after undergoing sharp selling pressure in previous sessions.

The positive undertone was largely driven by global developments. Overnight strength in US markets cascaded into Asian and European equities, all of which ended higher. Sentiment received an additional boost from developments at the Davos summit, where former US President Donald Trump indicated openness towards a trade deal with India, expressed admiration for Prime Minister Narendra Modi, softened his stance on tariffs against several EU nations, and ruled out any military action linked to Greenland. These signals collectively eased global trade concerns and revived risk appetite across markets.

What's Ahead

The market’s ability to hold above the 200-DMA keeps the short-term bias tilted positively. As long as Nifty sustains above the 25,120–25,170 support band, the recovery attempt may continue.

That said, volatility cannot be ruled out. Investors will closely track global market cues, upcoming macro data, and any further clarity around India–US trade discussions. While sentiment has clearly improved, sustainability of the rally will depend on follow-through buying and stability in global risk factors.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty extended its rebound and closed at 25,289.90 after opening strong and defending intraday dips near 25,168, indicating buying interest at lower levels. Broad-based participation with 40 advances reflects improving risk appetite, largely driven by short covering and strength in heavyweight counters. Technically, the index has reclaimed important ground above its recent swing zone, while RSI inching toward 40 signals easing selling pressure though momentum is still in recovery mode. As long as Nifty holds above the immediate supports at 24,952 and 24,739, the pullback can extend toward resistance levels placed at 25,638 and 25,850 in the near term.

Bank Nifty

Bank Nifty rebounded to close at 59,200.10, reclaiming its short-term support and hovering near the 50-day EMA zone, indicating a pause in the recent corrective phase. The index witnessed selling at higher levels after touching 59,573 but managed to hold gains, suggesting gradual accumulation. Market breadth remained firmly positive with strong participation from PSU and mid-sized banks, while select heavyweights stayed subdued. RSI moving toward the 50 mark reflects improving momentum. Immediate supports are seen at 58,691 and 58,375, while resistance is placed at 59,710 and 60,025.

Nifty Financial Services

The Financial Services index closed higher at 27,149.95 amid broad-based buying across NBFCs, PSU financials, and select private lenders. The steady advance with favourable breadth indicates renewed sectoral interest after recent weakness. Technically, the index is attempting to stabilize above its recent consolidation range, with buying visible on declines. With supports placed at 26,858 and 26,673, the index may attempt a move toward resistance levels of 27,457 and 27,642 if momentum sustains.

Sensex

Sensex advanced to 82,307.37, supported by gains across key frontline stocks and favourable breadth. The index maintained a positive bias throughout the session despite mild pressure in select heavyweights, reflecting underlying strength in the broader basket. Technically, the recovery indicates stability after recent volatility, with buying emerging on dips. As long as the index holds above support levels at 81,115 and 80,420, it may attempt to test resistance levels at 83,361 and 84,056 in the near term.