Nifty Slips From 26,300 as Profit Booking Kicks In; Is This a Pause or Trend Shift?
Market Today: Profit booking kicks in, what’s next?
Markets cooled off from record highs as profit booking emerged at higher levels. Nifty slipped below 26,300, while Bank Nifty ended marginally lower, weighed down by HDFC Bank. Market breadth weakened, with declines outpacing advances (2:3).
Structurally, rejection near the 26,335–26,372 zone marks a normal pullback after the recent breakout. As long as 26,000 holds, the broader uptrend remains intact. Bank Nifty drifted toward 60,000 with 59,550 as key support, while Sensex again faced resistance near 85,800.
Key Levels to Watch | January 06, 2026
| Index | Support | Resistance |
|---|---|---|
| Nifty | 26,150 & 26,050 | 26,325 & 26,400 |
| Bank Nifty | 59,550 & 59,300 | 60,250 & 60,450 |
| Sensex | 85,150 & 84,950 | 85,650 & 85,800 |
Sector & Stock Moves: Where was the action?
- IT stocks dragged the market as the Nifty IT index fell 1.43% post brokerage downgrades
- ONGC slipped 1.40% as upstream stocks tracked crude prices
- Defence stocks outperformed, with BEL up 2.64% on budget allocation expectations
- FMCG stayed resilient on Q3 updates, led by Nestle
- Auto stocks remained strong; Eicher Motors and Maruti Suzuki hit record highs
NIFTY50: Top Movers
| Gainers | Losers |
|---|---|
| NESTLEIND +2.73% | HDFCBANK -2.41% |
| BEL +2.64% | WIPRO -2.12% |
| EICHERMOT +2.02% | INFY -2.07% |
Open Interest Insight
Heavy call writing at 26,300 (1.06 Cr) and 26,400 (89.98L) points to strong supply overhead. Muted put writing keeps the PCR-OI near 1.0.
Takeaway: Upside may remain capped near 26,300–26,400 unless fresh put writing emerges. The index is more likely to consolidate than break out immediately.
Stocks on the Move
| Stock | % Move | What’s happening |
|---|---|---|
| PGEL | +4.63% | Accumulation-led breakout with strong volumes and long OI build-up |
| UNIONBANK | +3.61% | Broader Cup & Handle breakout near 155; fresh 52-week high |
| BEL | +2.64% | Contracting range; breakout trigger above 425 |
| SAIL | +2.29% | Continuation breakout near 150; momentum intact |
| PREMIERENE | -6.87% | Trading near 52-week low with selling pressure |
News You Can Use
- Bondada Engineering receives ₹627 crore LoA for a BESS project
- Polycab India sees a block deal worth ₹629 crore
- Waaree Energies subsidiary raises ₹1,003 crore
Q3 Business / Result Updates
- Kotak Mahindra Bank: Net advances up 16% to ₹4.80 lakh crore; deposits up 15%
- L&T Finance: Retail disbursements up 49% YoY; retail loan book up 20.3% YoY
Chart of the Day: POWERGRID (Daily)
Pattern: Double Bottom
Structure: Two well-defined lows at similar levels, separated by a moderate rebound, indicating selling pressure is gradually weakening.
Validation: A decisive breakout above the neckline, ideally supported by rising volumes, confirms trend reversal.
Trading Insight: A reliable reversal pattern where the post-breakout move often leads to a sustained upside with improving momentum.