Domestic markets are likely to open on a flat note, as analysts see some value buying at lower levels despite volatile global sentiment. Gift Nifty 25,600 signals a flattish opening.
Ponmudi R, CEO of Enrich Money, said Indian equities are set to open with a cautious undertone as global trade uncertainties, driven by aggressive use of tariffs by the US administration, continue to trigger a risk-off mood across global markets. “Heightened geopolitical tensions, along with persistent foreign investor selling and continued weakness in the rupee, are weighing on confidence and likely to cap any meaningful upside in domestic equities even during short-term recoveries,” he said.
Steady buying by domestic institutional investors continues to act as a key stabiliser, absorbing selling pressure and helping prevent deeper drawdowns in the market, he further said.
Technically, the market is in oversold position and analysts expect a pull-back or relief rally.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd., said: “The markets remained under pressure once again as the Nifty, after opening with a gap-down, faced persistent selling at higher levels throughout the session. However, it managed to close above its 100-DMA placed near 25,575, which is acting as an immediate support, followed by the recent swing low around 25,473. The overall market structure continues to look weak, with the MACD indicating a sell crossover on both the daily and weekly charts. While a short-term pullback cannot be ruled out, the index needs to decisively cross above 25,700 to trigger any meaningful short-covering rally towards the 25,900 zone. Conversely, a breakdown below 25,575 could open the door for further downside towards the 25,450 levels.”
Ponmudi said pre–Union Budget 2026 expectations are driving selective optimism around potential capex support, tax adjustments and fiscal measures, but Q3 FY26 earnings remain mixed — particularly in banking and IT — keeping price action largely stock-specific. Weekly expiry positioning is also adding to intraday volatility. “Overall, domestic resilience is partly offsetting global caution, resulting in a range-bound to mildly negative bias unless fresh positive triggers emerge,” he cautioned.
Published on January 20, 2026
