Bajaj Broking Market Commentary - Closing for 16th January 2026

Market Closing Commentary

Indian equity benchmarks gave up a large part of their intraday gains in the latter half of the January 16 session, as profit-taking in heavyweight stocks and caution ahead of key Nifty50 earnings kept sentiment subdued amid persistent global uncertainties. The markets opened on a positive note but gradually lost momentum as the session progressed.

The Sensex ended 187.64 points higher (+0.23%) at 83,570.35, while the Nifty 50 posted a marginal gain of 28.75 points (+0.11%) to close at 25,694.35.

On the sectoral front, Nifty IT and PSU Banks outperformed, providing support to the headline indices. In contrast, Nifty Healthcare, Pharma, and Consumer Durables remained under pressure and featured among the top laggards. Other sectors traded with a mixed bias, underscoring the lack of strong directional cues.

In the broader market, the Nifty Small-cap index declined 0.28%, while Midcap stocks edged up 0.16%, indicating selective, stock-specific buying. Overall, market breadth stayed mixed, pointing to a cautious and range-bound market environment.

Nifty Outlook

CMP: 25,694.35

Following a sharp rebound after a two-session correction, benchmark indices saw mild intraday profit-booking as investors remained cautious ahead of key Q3 earnings announcements. Reliance Industries is scheduled to report results post-market on January 16, while ICICI Bank and HDFC Bank will release their earnings on January 17, keeping market participants in a wait-and-watch mode.

The index continues to exhibit elevated volatility in the absence of clear directional cues. The formation of another high-wave candle suggests selling pressure near key resistance levels, with buying interest emerging at lower supports.

Nifty is currently hovering around its 100-day EMA. Monday's low of 25,473 is expected to act as immediate support.

On the upside, the 25,950-26,050 zone remains a crucial resistance band.

Nifty is likely to consolidate within the 25,500-26,000 range. A decisive breakout or breakdown from this band will determine the next directional trend.

Bank nifty Outlook

CMP: 60,095.15

Bank Nifty outperformed the broader market, led by strong gains in PSU banks. The index formed a large bullish candle with both upper and lower shadows, successfully breaking out of the previous six-session trading range, indicating heightened volatility and renewed buying interest. The index rebounded decisively from its 21-day EMA near 59,540 and closed above the key psychological level of 60,000, reflecting improving sentiment.

Going forward, follow-through strength could drive the index toward the 60,400 level in the near term. However, we expect Bank Nifty to remain in a consolidation phase with positive bias within the 58,700-60,400 range. A decisive breakout above this band or a breakdown below it will determine the next directional trend.

On the downside, the 59,000-58,700 zone acts as a critical short-term support, supported by the confluence of the 50-day EMA and the previous month's low, making it an important level to monitor.

Source : Equity Bulls

Keywords

Nifty NSE NiftyIT PSUBanks BankNifty