Trade setup for January 12: Market sentiment to remain cautious
Trade Setup for January 12: TCS, HCLTech to guide Nifty amid weak sentiment
Equity markets ended a tough week on a sour note, with the Nifty sliding for the fifth consecutive session on Friday and closing below the 25,700 mark amid broad-based selling. The benchmark index fell 193 points to 25,683, marking its steepest weekly decline since September 26, 2025, with a total loss of 2.45% for the week.
Friday’s session saw over 35 Nifty stocks closing in the red. Heavyweights like HDFC Bank led the losses, recording their worst weekly performance since January 2024 and erasing more than ₹1 lakh crore in market capitalisation. Overall, last week’s sell-off wiped out nearly ₹15 lakh crore from the BSE-listed companies.
While the broader market struggled, a few stocks bucked the trend. Asian Paints, ONGC, and HCL Technologies emerged as notable gainers, whereas Adani Enterprises, NTPC, and Adani Ports faced heavy selling pressure. Sector-wise, Oil & Gas, IT, and PSU Banks showed relative resilience, but Realty, Auto, and Consumer Durables bore the brunt of losses.
The broader markets were particularly weak, with the Nifty Midcap 100 Index falling 0.79% and the Nifty Smallcap 100 Index sliding 1.81%.
Looking ahead, investor attention will shift to quarterly earnings, with Tata Consultancy Services and HCL Technologies reporting on Monday, followed by Reliance Industries on Friday.
Market experts suggest key levels to watch in the coming week:
Support: A break below 25,700 could open the door to a deeper decline towards 25,400, with the 100-day moving average near 25,540 acting as crucial support. The November 2025 swing low at 25,318 remains a key downside target if selling intensifies.
Resistance: Immediate resistance is near 25,900, with the 50-day moving average at 25,960 and broader resistance around 25,950-26,000.
For Nifty Bank, the index closed below its 20-day EMA for the first time since December 29, signaling a loss of short-term momentum. Immediate support lies in the 59,100-59,000 zone, while a sustained fall below 59,000 could push the index down towards 58,500. On the upside, resistance is seen at 59,500-59,600.
Overall, analysts expect market sentiment to remain cautious, with TCS and HCLTech’s results likely setting the tone for Nifty’s direction in the week ahead.
