Indian Stock Market Preview: January 23, 2026
Introduction
Indian equity benchmarks are positioned for a flat to marginally positive opening this Friday, January 23, 2026. Early indicators from the Gift Nifty, which is currently trading at 25,396 (a gain of 0.39% or 99 points), suggest that the domestic market may attempt to build on the previous session's relief rally. While the global backdrop is supportive, primarily driven by a robust closing on Wall Street, the local sentiment remains tempered by a massive wave of corporate earnings and the persistent exit of foreign capital.
For retail investors, today's session is likely to be defined more by stock-specific volatility than a broad index-wide trend. With heavyweights like Cipla, JSW Steel, and IndusInd Bank scheduled to release their third-quarter results, the market will be looking for fundamental justification to sustain the current levels. This article provides a comprehensive deep dive into the technical levels, global signals, and fundamental triggers that will govern market movement today.
Global Market Snapshot: Wall Street Gains vs. Asian Caution
US Markets - Tech-Led Recovery
US equity markets delivered a strong performance on Wednesday, providing a constructive foundation for global risk assets. The rally was broad-based, fueled by cooling inflation concerns and strong corporate guidance from the technology sector.
| Index | Closing Value | Change (Points) | Change (%) |
|---|---|---|---|
| Dow Jones Industrial Average | 49,393.18 | +295 | +0.60% |
| S&P 500 | 6,933.34 | +37 | +0.54% |
| Nasdaq Composite | 23,455.94 | +204 | +0.88% |
This robust closing reflects a growing confidence among American investors regarding the Federal Reserve's policy path and the resilience of corporate margins. These gains typically act as a positive catalyst for Indian IT and high-growth sectors.
Asian Markets - A Divergent Start
Despite the strong lead from the US, Asian peers are showing a mixed performance in early Thursday trading. This divergence is largely due to regional factors, including profit-booking in Japanese equities and cautiousness surrounding trade policy updates in China.
- Nikkei 225 (Japan): 52,774.60 (-0.41%) - Experiencing some consolidation after recent multi-week highs.
- Hang Seng (Hong Kong): 26,585.10 (+0.37%) - Finding support from a recovery in regional technology stocks.
- Shanghai Composite (China): 4,116.94 (+0.08%) - Remaining subdued as investors await further economic stimulus updates.
International Nifty Signals
- Gift Nifty: 25,396 (+0.39%) - Indicates a gap-up or stable start for the Nifty 50.
- SGX Nifty (Early Indications): 25,337.5 (-0.08%) - Reflecting some early morning cooling, suggesting that the opening gains might be modest.
Domestic Market Analysis: Technicals and Institutional Flows
Previous Session Recap (January 22, 2026)
On Wednesday, the Indian markets finally broke a three-day losing streak. The Nifty 50 managed to climb back above its 200-day Exponential Moving Average (EMA), a critical long-term support level located near 25,100.
- Nifty 50: 25,289.90 (+0.53%)
- Sensex: 82,307.37 (+0.49%)
- Bank Nifty: 59,200.10 (+0.68%)
While the recovery was welcome, the Nifty formed a high-wave candlestick pattern, which suggests that while the bulls defended the lower levels, there is still significant uncertainty and a lack of conviction regarding the next big move.
Technical Indicators and Market Sentiment
- Nifty RSI: 33.82 - The Relative Strength Index (RSI) remains in technically oversold territory (typically below 30), suggesting that while a further relief rally is possible, the overall momentum is still weak.
- Bank Nifty RSI: 47.00 - This is in a neutral zone, indicating that the banking sector is neither overbought nor oversold.
- India VIX: 13.35 (-3.12%) - The volatility index declined slightly, but at over 13, it remains elevated enough to suggest that intraday swings will continue to be sharp.
Institutional Activity: The Tug-of-War
Foreign Institutional Investors (FIIs) remain the primary source of downward pressure, while Domestic Institutional Investors (DIIs) continue to act as the market's safety net.
Activity on January 22, 2026:
- FII Net Position: Sold ₹2,549.80 crore (Net Sellers)
- DII Net Position: Bought ₹4,222.98 crore (Net Buyers)
- Total Net Flow: +₹1,673.18 crore
Data suggests that FII selling is driven by global fund reallocation and a strengthening Dollar Index, which makes emerging markets like India relatively less attractive in the short term. However, the aggressive buying by DIIs indicates strong domestic liquidity and belief in long-term earnings growth.
Key Support and Resistance Levels
Nifty 50 Technical Zones
As the market heads into the final session of the week, traders should monitor these levels closely for potential reversals or breakouts.
| Level Type | Target 1 | Target 2 | Critical / Major |
|---|---|---|---|
| Support | 25,150 | 25,100 | 24,900 |
| Resistance | 25,450 | 25,650 | 26,000 |
Options Data Insight: The highest concentration of Call Open Interest (OI) is at the 26,000 strike (1.43 crore contracts), making it a massive psychological and technical ceiling. Conversely, the 25,000 strike has 1.00 crore contracts of Put OI, serving as the immediate floor for the index.
Bank Nifty Technical Zones
| Level Type | Target 1 | Target 2 | Critical / Major |
|---|---|---|---|
| Support | 58,700 | 58,500 | 57,811 |
| Resistance | 59,700 | 60,000 | 60,500 |
Options Data Insight: The 60,000 strike holds 20.41 lakh call contracts, while the 59,000 strike has 9.53 lakh put contracts. This suggests a range-bound bias for the banking index today.
Stocks to Watch: January 23, 2026
1. InterGlobe Aviation (IndiGo) - Earnings Reaction
IndiGo reported a significant drop in its Q3 FY26 performance. The net profit came in at ₹549.1 crore, representing a staggering 77.6% YoY decline. This was largely due to an exceptional loss of ₹1,546.5 crore. Investors should monitor the stock's reaction to these weak figures and management's commentary on fuel costs and fleet availability.
2. DLF - Earnings Beat
The real estate major reported robust numbers with a net profit of ₹1,203.4 crore, up 13.7% YoY. More impressively, revenue jumped 32.2% to ₹2,020.2 crore. This performance suggests continued strong demand in the luxury housing segment and could provide a boost to the entire Nifty Realty index.
3. Premier Energies - Growth Catalyst
A strong play in the renewable sector, the company reported a 53.5% YoY increase in net profit to ₹391.7 crore. The commissioning of a new 400 MW solar facility in Telangana provides clear visibility for future revenue growth. Watch for positive momentum here.
4. Cipla - Earnings Due Today
As a pharmaceutical bellwether, Cipla's results during trading hours will be a key market driver. Focus areas include US generic sales margins and growth in the domestic formulation business. Higher-than-normal volatility is expected in the Nifty Pharma sector following the announcement.
5. JSW Steel - Metals Outlook
The steel giant's earnings will serve as an indicator for industrial demand and infrastructure spending. Key metrics to watch include realization per tonne and the impact of raw material cost fluctuations on overall margins.
6. IndusInd Bank - Asset Quality Focus
Investors will scrutinize IndusInd Bank's results for any signs of deterioration in asset quality. Particular attention will be paid to the non-performing asset (NPA) trends and the performance of the vehicle finance portfolio, which has been a point of concern in recent quarters.
7. Federal Bank - Technical Buy Opportunity
- Strategy: Buy at ₹282.20
- Target: ₹308 (+9%)
- Stop Loss: ₹268
- Rationale: The stock is currently trading above its 50-day EMA and has confirmed a breakout from its previous swing high, supported by positive momentum indicators.
Events and Corporate Actions Calendar
Major Earnings Today (Large-Cap)
- Cipla, JSW Steel, IndusInd Bank
- Bharat Petroleum Corporation (BPCL)
- Shriram Finance, Adani Green Energy
Notable Mid-Cap Results
- DCB Bank, Granules India, India Cements
- JSW Energy, Laurus Labs, MCX
- Nuvama Wealth, Piramal Finance, Sona BLW
Corporate Actions (Ex-Dividend Jan 23)
Investors should note that the following stocks will trade ex-dividend today, which may result in a minor downward price adjustment equivalent to the dividend amount:
- Central Bank of India, DCM Shriram, Havells India, Oberoi Realty, Suraj, Tips Music.
F&O Ban List
- Bandhan Bank: Remains in the ban list following a 51.8% plunge in Q3 profit.
- Sammaan Capital: Continues under trading restrictions.
Trading Strategy and Market Outlook
Intraday Scenarios
- Bullish: If the Nifty sustains above 25,300, look for targets toward 25,450. Focus on banking and pharma names that show early strength.
- Range-Bound (Most Likely): The index may oscillate between 25,200 and 25,450. For this scenario, the best strategy is to book profits near resistance and accumulate on dips toward the 25,150 support zone.
- Bearish: A break below 25,200 could lead to a retest of the 25,100 EMA. In this case, defensive sectors like FMCG and IT might offer better protection.
Sector-Wise View
- Bullish: Banking & Financials (selectively), Pharmaceuticals, and Renewable Energy.
- Neutral: Metals and Real Estate (awaiting trend confirmation).
- Cautious: Aviation (due to IndiGo's results) and Small Finance Banks.
Risk Factors to Monitor
Investors should stay alert to the India VIX (currently at 13.35); any spike above 15 could signal a return of aggressive selling. Additionally, the Rupee stability around the 91.50-91.60 levels is crucial to stem further FII outflows.
Key Takeaways
- FII Selling vs. DII Buying: FIIs sold ₹2,549.80 crore while DIIs bought ₹4,222.98 crore on January 22.
- Technical Support: The Nifty must hold the 25,100 level (200-day EMA) to maintain its short-term recovery structure.
- Earnings Impact: Watch IndiGo for potential weakness and DLF for positive momentum following their respective Q3 reports.
- Strategic Buy: Federal Bank presents a technical breakout opportunity with a target of ₹308.
What This Means for Investors
Historical trends indicate that during heavy earnings weeks, indices often move into a consolidation phase as the market digest corporate health data. For retail investors, this is a time for patience rather than aggressive positioning. Data suggests that stock selection will outperform index-level bets in the current environment.
Investors may consider monitoring the quality of earnings rather than just the headline profit numbers—focus on margin sustainability and management guidance for the upcoming fiscal year. Keeping a healthy cash balance (around 15-20%) will allow for opportunistic buying if the market tests the 25,000 psychological support again.