Indian equities are expected to open on a positive note on January 5, with GIFT Nifty indicating a start around 26,543, nearly 87 points higher. Market sentiment remains cautiously optimistic, supported by improving domestic technical indicators. However, overall direction will continue to be influenced by global equity cues, movements in crude oil prices, and institutional fund flows.
Nifty 50 opened sharply higher and sustained gains, signaling strong bullish sentiment. The index crossed key resistance at 26,200, broke above the previous all-time high of 26,325, and closed at 26,328, confirming trend continuation. Immediate resistance lies at 26,450–26,500, with support at 26,150–26,200. RSI at 62.39 is rising, VIX remains low at 9.45, and derivatives show heavy 26,200 put accumulation. Buy-on-dips above 26,200 with a 26,150 stop.
Bank Nifty opened strongly and surged to a fresh all-time high of 60,203, reflecting robust buying interest and positive sentiment in banking stocks. The move indicates strong institutional support and sustained follow-through buying. Immediate resistance is placed at 60,400–60,500, while support at 59,800–59,900 is crucial. Daily RSI at 67.55 is rising, signaling strong momentum. Traders should maintain a bullish bias and follow a buy-on-dips strategy with strict risk management.
Notably, after eight consecutive sessions of selling, FIIs turned net buyers on January 2 with equity purchases worth Rs 289 crore, while DIIs bought equities worth Rs 677 crore on the same day.
Amid ongoing global uncertainty, traders should remain selective and disciplined, focusing on quality stocks on declines. Fresh long positions are recommended only after a confirmed and sustained breakout above the 26,400 level.