On the first trading session of calendar year 2026, the benchmark Nifty index opened the year on a subdued note, moving within a narrow intraday band of just 84 points. This was the smallest daily trading range recorded since September 17, 2025, reflecting a phase of indecision and limited participation from both buyers and sellers. The index ultimately formed a small-bodied candle on the daily chart, a technical signal that typically denotes hesitation and a lack of clear directional conviction in the market.
Within the Nifty constituents, Shriram Finance and Bajaj Auto emerged as the top performers, contributing positively to the index. On the other hand, ITC and Dr. Reddy’s Laboratories were among the major laggards, weighing on overall sentiment. Sector-wise, the leadership came from Nifty Auto and Nifty Metal, both of which witnessed healthy buying interest. Conversely, Nifty FMCG and Nifty Pharma ended as the weakest sectoral indices for the session.
The broader market displayed a mixed undertone. The Nifty Midcap 100 outpaced the headline index and closed with gains of nearly 0.50%, signaling selective strength in mid-sized companies. Meanwhile, the Nifty Small Cap 100 finished almost unchanged, reflecting muted action in the small-cap space. Market breadth remained neutral, with the Advance/Decline ratio staying largely flat.
Nifty View
Going ahead, for Nifty, the zone of 26200-26240 will act as an important hurdle for the index. Any sustainable move above the 26240 level will lead to a sharp upside rally in the index upto the 26400 level in the short term. On the downside, the zone of 26030-26000 will act as immediate support for the index.
Bank Nifty View
The banking benchmark, Bank Nifty, also mirrored the broader market’s subdued sentiment. The index moved within a narrow intraday range of just 174 points, marking its lowest daily trading range since May 2024. Such a tight range highlights a clear phase of consolidation and hesitation among market participants. On the daily chart, the index formed a small-bodied candle, reinforcing the view that neither bulls nor bears were willing to take decisive control during the session.
Going ahead, the zone of 59900–60000 will act as the immediate hurdle. A sustained move above 60000 is likely to trigger a continuation of the up move, opening the doors for a rally toward 60600 in the near term. On the downside, the levels of 59200–59100 remain crucial support. A breach below this zone may pause the bullish momentum.