Weekly Report: 19th Jan 2026

Weekly Trend Report

Week Gone By

The Indian equity market ended the week sideways, reflecting a mix of corporate earnings, economic data, and political developments. Early trends from the Maharashtra municipal elections favoring the BJP-Shiv Sena alliance provided a boost to investor sentiment. However, ongoing geopolitical tensions, FII outflows, US-Iran conflicts, and uncertainties around the India-US trade deal kept the market range-bound, resulting in a week of cautious consolidation. In the week ended on Friday, 16 January 2025, the S&P BSE Sensex shed 5.89 points or 0.01% to settle at 83,570.35. The Nifty 50 index rose 0.04 points or 11.05% to settle at 25,694.35. The BSE Mid-Cap index rose 0.15% to close at 46,186.05. The BSE Small-Cap declined 0.45% to end at 49,701.91. India’s consumer inflation rose to 1.33% in December, accelerating from 0.71% in the prior month. The rise in consumer inflation was mainly driven by food prices, while fuel and light inflation rate eased in December.

Week Ahead

Indian equities face a mixed start to the week of 17 – 23 Jan 2026, with recent macro cues underlining a cautious tone. Persistent foreign institutional selling emerged as a drag, offsetting domestic investor support and keeping valuations under pressure as volatility persisted. Investors would continue to track the slew of data release scheduled for released next week. The focus would also remain on corporate announcements as the latest earnings season enters its next leg in the coming week. In India, the M3 Money Supply figures for the week ended on January 09 would be made public on Wednesday (21 January 2026). The Money Supply M3 in India increased to 322144.23 INR Billion in the week ending December 31 from 246833.33 INR Billion two weeks before. In China, the GDP Growth Rate for the fourth quarter would be announced on Monday (19 January 2026). In the United States, the API Crude Oil Stock Change for the week ended on January 16 would be unveiled on Wednesday (21 January 2026) .

Technical Overview

The Nifty has witnessed a sharp corrective move from the 26,250–26,300 resistance zone, forming a sequence of lower highs on the intraday charts, indicating short-term supply dominance and profit booking at higher levels.
Price has retraced back into the 25,650–25,750 demand/supply zone, which earlier served as a strong breakout base, suggesting the market is now testing the strength of buyers.
On the daily timeframe, the index has slipped below the short-term EMA cloud and briefly undercut the 50-DMA, highlighting a loss of momentum and a shift into consolidation-to-weak structure.
However, price is still holding well above the rising 200-DMA, keeping the broader trend intact and preventing any major trend breakdown at this stage.
Candles near support are showing smaller real bodies and long lower wicks, reflecting buying interest emerging on declines rather than aggressive distribution.
Intraday structure shows range compression between 25,650–25,900, indicating equilibrium between buyers and sellers.
A sustained hold above the 25,650–25,700 base can lead to a technical pullback bounce toward 25,950–26,100, while a decisive breakdown below 25,500 would expose the index toward the 25,300–25,400 demand pocket.
Momentum indicators have cooled, with MACD in mild negative territory but flattening, suggesting selling pressure is slowing rather than accelerating.
Volumes during the decline were elevated initially but have started to normalize near support, indicating that panic selling is reducing and the market is attempting to stabilize.
Conclusion: The overall structure remains short-term corrective within a larger uptrend. As long as Nifty holds above the 25,600–25,650 support zone, the bias remains range-bound to mildly positive with scope for a recovery move. A sustained breakout above 26,100–26,300 will be required to re-ignite upside momentum and resume the primary uptrend. Until then, expect volatile consolidation with stock-specific opportunities rather than broad trending moves.

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