Daily Morning Report – 06/01/2026

NIFTY OUTLOOK: 26250.30 FII -36.25 cr DII 1764.07 cr

As discussed yesterday, market behaviour remained on expected lines during the day, as continued positive sentiment took Nifty up to 26373 but failed to sustain at higher levels and slipped to a day low of 26210, i.e., near our support of 26202.

Further, a bearish candle appeared on the daily chart of Nifty, suggesting a diminishing of buying pressure and some profit booking. Hence, if further profit booking persists, Nifty may drift down to 26167–26125 on a decisive breakdown of 26208. If supply intensifies further, it may have a chance to test 26082.

Furthermore, the imminent trend for Nifty remains positive and may encounter resistance around 26293–26335. A break and sustained move above these resistance levels may push Nifty to 26376–26418.

Bank Nifty OUTLOOK:
Spot: 60044.20 PCR: 1.09 Max CE OI: 59500 Max PE OI: 59500

On 5th January 2026, the Bank Nifty index closed at 60044.20 (+106.75, +0.18%). The total movement in the index was 577.55 during the trading session. The index made a high of 60437.35 and a low of 59859.80.

Technical View:
Important support and resistance levels of Bank Nifty are 59200 and 60365, respectively.
Intraday support and resistance levels are 59885.30 and 60203.50, respectively.
The Relative Strength Index (RSI) for the Nifty Bank index is at 65. Below 30 is considered oversold and above 70 overbought.

Bank nifty Day SMA Analysis:

Bank nifty is trading above 8 out of 8 SMA’s (5, 10, 20, 30, 50, 100, 150, 200 Day).

Bank nifty is trading below 0 out of 8 SMA’s.

No Candlestick Pattern was identified in bank nifty on daily chart.

Macro:

1. Dollar index is @ 97.98

2. Vix is @ 14.97 (+3.17%)

3. Brent crude is @ 61.74

4. US 10 years bond yield is @ 4.164

Note: U.S. manufacturing activity slumped to a 14-month low in December, with new orders contracting further and input costs rising as the sector continued to feel the impact of President Donald Trump’s import tariffs. The Institute for Supply Management survey on Monday suggested that a recovery is unlikely in the near term, though economists remain hopeful of a turnaround this year as Trump’s tax cuts take effect.

The ISM said its manufacturing PMI dropped to 47.9 in the final month of 2025, the lowest level since October 2024, from 48.2 in November. A reading below 50 indicates contraction in manufacturing, which accounts for 10.1% of the economy.

The United States could raise tariffs on India if New Delhi does not meet Washington’s demand to curb purchases of Russian oil, President Donald Trump said on Sunday, escalating pressure on the South Asian country as trade talks remain inconclusive.

Conclusion: The geopolitical situation is worsening day by day, which is pushing bullion into a new orbit along with base metals. The IT sector fell by 2.5% on worries over new US tariffs and delays in the trade deal. The US President warned India of more tariffs if it does not stop the purchase of Russian oil.

Important Pivot Point Levels for Today           

Nifty

Bank Nifty

By Ashok Bhandari (RA)

SEBI Regd. No. INH00019549