Daily Morning Report – 12/01/26

NIFTY OUTLOOK: 25,683.30
FII: -Rs. 3,769.31 cr  DII: Rs. 5,595.84 cr
(12th–16th January 2026)

As discussed in our previous report dated 5th January 2026, market behaviour remained on expected lines during the week. Nifty failed to sustain bullish sentiment and slipped sharply to 25,623, ending the week at 25,683.30.

A long bearish candle has formed on the weekly chart, negating the bullish sentiment seen in the previous week. This candle has formed a bearish engulfing pattern, engulfing multiple prior weekly candles, which technically suggests a shift in sentiment towards bearishness and may act as a trend reversal pattern, subject to confirmation.

If Nifty continues with bearish momentum, a decisive breakdown below 25,565 could lead to further downside towards 25,445–25,325. If selling pressure intensifies, the index may test 25,206.

On the upside, 25,805–25,923 is likely to act as immediate resistance. A sustained breakout above this zone could push Nifty towards 26,041–26,160.

BANK NIFTY OUTLOOK:
Spot: 59,251.55  PCR: 0.85
Max CE OI: 59,500  Max PE OI: 59,500

On 9th January 2026, Bank Nifty closed at 59,251.55, down 434.95 points or 0.73 percent. The index recorded a total intraday movement of 585.45 points, with a high of 59,739.65 and a low of 59,154.20.

Technical View:
Key support and resistance levels for Bank Nifty are placed at 59,340 and 60,560, respectively.
Intraday support and resistance levels are seen at 59,091 and 59,413.
The RSI for Bank Nifty stands at 48.0. A reading below 30 indicates oversold conditions, while above 70 suggests overbought levels.

Bank nifty Day SMA Analysis:

Bank nifty is trading above 4 out of 8 SMA’s (50, 100, 150, 200 Day).

Bank nifty is trading below 4 out of 8 SMA’s (5, 10, 20, 30 Day).

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

Macros

1.Dollar index is @ 98.70 (-0.180)

2.Vix is @ 14.49 (-96)

3.Brent crude is @ 63.25

4.US 10 years bond yield is @ 4.171

Note:
Geopolitical conditions have worsened across multiple regions. The US has issued warnings to Iran, Cuba, and Mexico, while statements regarding Greenland have added to global uncertainty. Tensions in the Middle East remain extremely high, raising the risk of further escalation.

Meanwhile, China, Russia, and Iran have commenced joint naval exercises in South African waters under the BRICS Plus framework, aimed at ensuring maritime security. BRICS Plus represents an expanded geopolitical bloc seen as a counterweight to US and Western dominance.

For Indian markets, heavy selling witnessed last week has pushed sentiment into a cautious zone. With war-related concerns looming, markets are likely to remain on edge and may see further pressure in the near term.

Important Pivot Point Levels for Today           

Nifty

Bank Nifty

By Ashok Bhandari (RA)

SEBI Regd. No. INH00019549