Market Outlook Jan 27: Nifty & Sensex Target Recovery as Gift Nifty Signals Positive Start

The Indian equity markets are set to resume trading today, Tuesday, January 27, 2026, after a long weekend on account of the Republic Day holiday. While the underlying sentiment remains cautious following a sharp sell-off last Friday, global cues and early indicators suggest a potential gap-up opening.

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1. Gift Nifty Signals a Positive Start

As of 7:30 AM IST, the Gift Nifty is trading around the 25,160 level, indicating a premium of nearly 80 points over the Nifty 50 futures' previous close. This suggests that the Sensex and Nifty 50 are likely to open in the green, tracking a recovery in global peers.

2. Technical Outlook: Nifty 50 and Sensex

Despite the positive opening signal, the broader market structure remains fragile after the benchmark indices shed nearly 2.5% last week.

• Nifty 50: On Friday, the Nifty 50 formed a large bearish candle on the daily chart, closing just above the psychological mark of 25,000. Analysts at HDFC Securities note a "lower top reversal" pattern. If the Nifty fails to hold 24,900, the next major support zone lies at 24,600.
• Sensex: The index closed Friday at 81,537.70, down 769 points. The immediate resistance is seen at 82,000–82,100. Experts suggest that unless the Sensex reclaims the 82,000 mark, the path of least resistance remains downward toward the 81,000 support level.

3. Bank Nifty: Deteriorating Momentum

The Bank Nifty faced intense selling pressure on Friday, sliding 1.23% to end at 58,473.10.

• Key Levels: Immediate support is pegged at the 58,000–58,100 zone (aligned with the 100-day EMA). A breach here could lead to a deeper correction toward 57,500.
• Resistance: Recovery attempts are likely to be capped at the 58,900–59,000 range.

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4. Key Triggers to Watch Today

Investors are navigating a "perfect storm" of macro and micro events this week:

• The "Fed" Factor: Global markets are on edge ahead of the US Federal Reserve's interest rate decision. Any hawkish commentary regarding inflation could dampen the recovery.
• Currency Pressure: The Indian Rupee hit a fresh record low of 91.97 against the US Dollar on Friday. A weak Rupee typically leads to FII (Foreign Institutional Investor) outflows, further pressuring domestic stocks.
• Q3 Earnings Season: Stock-specific action will be driven by results from heavyweights including Kotak Mahindra Bank, Axis Bank, Tata Consumer, and Asian Paints.
• Budget Countdown: With the Union Budget 2026 around the corner, traders are positioning for potential policy shifts and tax updates.

5. Brokerage Recommendations for Jan 27

• Cautious Accumulation: Choice Equity Broking suggests selective accumulation only if key supports hold.
• F&O Expiry Volatility: With the monthly F&O expiry approaching this Thursday, expect high volatility and wild swings in the 24,900–25,200 Nifty range.

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Disclaimer

The views and investment tips expressed by investment experts on FinScann are their own and not those of the website or its management. FinScann advises users to check with certified experts before taking any investment decisions. The information provided is for educational purposes and does not constitute financial advice.