Stock Market Technical Analysis | 5 to 9 Jan 2026 Weekly Wrap

Markets corrected sharply last week as volatility spiked, yet selective stocks and defensive sectors showed resilience. Here’s a data-backed breakdown of what the indices, derivatives, and global cues are signaling next.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded with negative bias in the previous week before closing with 2.45% cut at 25683 level. Banking Index performed better than
  the benchmark index as it closed with 1.50% cut at 59252 level.
• Among the Nifty constituents, BEL and TITAN outperformed the benchmark index as they closed with 3.84% and 3.70% gains while TRENT and RELIANCE underperformed as they closed with 9.90% and 7.35% cut respectively. Among the Bank Nifty constituents ICICIBANK outperformed the benchmark index as it closed with 3.61% gain while HDFCBANK underperformed the benchmark index as it closed with 6.25% cut.
• Among sectors, NIFTYDEFENCE index outperformed the benchmark index during the previous week as it closed with 1.35% gain while NIFTYPSE index
  underperformed as it closed with 3.54% cut. Broader market underperformed the benchmark index as both MIDCAP index and SMALLCAP index closed with
  2.64% and 3.08% cut respectively.
• Volatility index (India VIX) closed with 15.66% gain at 10.93 level.
• FII were net sellers as they sold stocks worth Rs 8,808 Cr while DII were net buyers as they bought stocks worth Rs 15,700 Cr during the previous week in
  the cash segment.
• Globally, equity markets traded with positive bias as both US market (DJIA) and European markets (STOXX 600) closed with 2.32% and 2.94% gains
  respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 25800 call and 25400 put with max OI at 26000 call and 25500 put side (13th Jan expiry). Nifty cumulative PCR closed at 0.62 for Jan 09.
• Derivatives data for Bank-nifty suggest max OI addition at 59500 call and 58000 put with max OI at 60000 call and 59500 put side (27th Jan expiry). Banknifty cumulative PCR closed at 0.92 for Jan 09.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded with negative bias in the previous week and closed with bearish candlestick formation on the weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 25,300–25,000 level and resistance at 26,000–26,300 level

BANKNIFTY (WEEKLY)

• Banking index performed better than the benchmark index and closed with bearish candlestick formation on the weekly chart
• Banking index is likely to perform in line with the benchmark index in the coming week
• Banking index has support at 58,500-57,800 and resistance at 60,000-60,500 level

FINNIFTY (WEEKLY)

• FINNIFTY index underperformed the banking index and closed with bearish candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 27,000-26,700 level and resistance at 27,750-28,000 level.

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Market FAQs – Weekly Summary

Why did Nifty correct sharply last week?

Nifty declined due to rising volatility, heavy FII selling, and profit booking in heavyweight stocks like Reliance and Trent, despite supportive global markets.

Which sectors outperformed the market?

NIFTY Defence index outperformed, supported by stock-specific buying in BEL, while PSU stocks and FMCG remained under pressure.

What does the rise in India VIX indicate?

A 15.66% jump in India VIX signals increased uncertainty and cautious trader positioning, often seen near short-term market bottoms or event risks.

How is derivatives data shaping near-term outlook?

Low Nifty PCR of 0.62 and heavy call OI at 26,000 suggest limited upside, while put writing near 25,500 may act as short-term support.

Is Bank Nifty relatively stronger?

Yes. Bank Nifty showed relative resilience aided by ICICI Bank strength, although pressure remains due to HDFC Bank weakness.

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• Want to refine your risk-reward planning? Explore our insights on 👉 Position Sizing & Risk Management Strategies.
• Understand the sectoral trends impacting stocks like Asian Paints. 👉 Consumer Durables Sector Analysis
• Learn how to interpret derivatives data for better trading decisions. 👉 Advanced Trading Strategies