Stock Market Ends Lower: Nifty Below 26,250 Amid Profit Booking

The mid and small-cap indices outperformed as BSE Midcap index inched up by 0.05% and the Smallcap index rose by 0.07%.

Among sectors, IT, oil & gas, telecom down 0.5-1%, and realty index spiked 2%. Further, the consumer durables index rose 1%, while the metal and FMCG indices added 0.5% each.

Indian Rupee traded weak by 9 paise to 90.27 against the dollar.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said, "The benchmark indices witnessed profit booking at higher levels. The Nifty ended 75 points lower, while the Sensex was down by 322 points. Among sectors, the Reality and Defence indices outperformed, rallying over 2 per cent, whereas the IT index lost the most, shedding over 1.5 per cent."

"Technically, after an early morning intraday rally due to profit booking at higher levels, the market corrected sharply. However, the short-term market outlook remains positive. Additionally, on daily and intraday charts, the market is holding a higher bottom formation that also supports a further uptrend from the current levels," he added.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Domestic markets began the first full week of 2026 on a cautious footing, as Indian 10-year bond yields reflected expectations of elevated government borrowing."

"On a positive note, December GST collections saw a rebound after November's dip, while the manufacturing PMI moderated but stayed firmly in expansionary territory. Early Q3 trends in bank credit/advances indicate strong momentum, supporting overall optimism. Globally, investors are awaiting key U.S. economic data and Fed guidance, while the BoJ reaffirmed its tightening stance. Looking ahead, Q3 earnings will dominate focus and guide near-term market trends, with sentiment remaining moderately positive."

Vatsal Bhuva, Technical Analyst at LKP Securities, said, "In Monday's session, profit booking was observed in the Bank Nifty index from higher levels, resulting in the formation of a bearish candlestick on the daily chart. However, the broader chart structure remains positive as the index has delivered a falling trendline breakout and is sustaining above its short-term 10-day and 20-day EMAs."

"Additionally, the RSI is in a bullish crossover, indicating underlying strength in momentum. Hence, as long as Bank Nifty sustains above the 20-day EMA, a buy-on-dips strategy can be adopted with a positive bias. Immediate support is placed at 59,700, resistance at 60,500, while positional support is seen near 59,300 levels."

- ANI