Daily Morning Report – 05/01/2026

NIFTY OUTLOOK: 26328.55 FII 289.80 cr DII 677.38 cr
(5th – 9th January 2026)

As discussed in the previous report dated 29th December 25, market behaviour remained on expected lines during the week gone by, as Nifty started on a negative note and tested our breakdown level of 25935 (i.e., made a weekly low of 25878). From there, buying pressure emerged, which took Nifty up to 26340.

Further, after an intense struggle between buyers and sellers for six consecutive weeks, a strong bullish candle appeared on the weekly chart of Nifty, which surpassed its all-time high. This suggests that buyers have overcome selling pressure and may continue with bullish sentiment. Hence, if Nifty successfully takes out 26437, it may rally further to 26547–26655. If demand intensifies further, it may have a chance to test 26763.

However, on the downside, 26220–26111 may act as immediate support for Nifty. If Nifty fails to defend these support levels, it may slip further to 26003–25893.

Bank Nifty OUTLOOK:
Spot: 60150.95 PCR: 1.14 Max CE OI: 59500 Max PE OI: 59500

On 2nd January 2026, the Bank Nifty index closed at 60150.95 (+439.40, +0.74%). The total movement in the index was 465.50 during the trading session. The index made a high of 60203.75 and a low of 59738.25.

Technical View:
Important support and resistance levels of Bank Nifty are 59200 and 60365, respectively.
Intraday support and resistance levels are 60023 and 60279, respectively.
The Relative Strength Index (RSI) for the Nifty Bank index is at 67.5. 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.

One Candlestick Pattern was identified in bank nifty on daily chart.

• Belt Hold Uptrend
• Long Line Uptrend

Macro:

1. Dollar index is @ 98.16

2. Vix is @ 14.51 ( -2.94 % )

3. Brent crude is @ 60.75

4. US 10 years bound yield is @ 4.189

Note: In the latest development, the US struck Venezuela and arrested President Maduro (another petro-dollar game after Iraq). Venezuela has the largest oil reserves in the world, approximately 20%, but supplies only 1% of global oil due to heavy sanctions by the US and its allies. Now, US companies may get access to these oil reserves, and the US will have the largest oil reserves under its control.

As far as Indian markets are concerned, benchmarks hit an all-time high on the back of some short covering by FIIs and fresh buying in the cash segment. On the tariff front, the Government of India is trying to reduce the additional 25% tariff imposed as a penalty for purchasing Russian crude oil. A US counterpart reportedly said this is the best deal they have received from India.

Metals and bullion-related companies performed well. After a long year-end holiday, FIIs will return to their desks, and it will be interesting to see their behaviour at all-time highs. Mid-cap and small-cap stocks are showing signs of reversal.

The earnings season will start in full swing from tomorrow. If it goes well, mark my words—this will be the year of the broader market, i.e., mid-cap and small-cap stocks.

Important Pivot Point Levels for Today           

Nifty

Bank Nifty

By Ashok Bhandari (RA)

SEBI Regd. No. INH00019549