The week gone by was yet another tough and down week. After remaining sideways over the previous week, BSESENSEX lost 2,032.65 points or 2.43% to close at 81,537.70 points while NIFTY lost 645.70 points or 2.51% to close at 25,048.65 points. BANKNIFTY lost 1,622.05 points or 2.70% to close at 58,473.10 points. The broader markets saw BSE100, BSE200 and BSE500 lose 2.74%, 3.01% and 3.31%. BSEMIDCAP lost 4.20% while BSESMALLCAP was down 5.79%. The best performing sector of last year, BSEMETAL was also down 1.01% this week. Incidentally all sectorial indices were negative this week. Markets gained on just one of the five trading sessions and was down on four. In three weeks’ duration, the cumulative damage to the benchmark indices has been about 5% which is substantial by all counts. 

The Indian Rupee was under pressure and lost Rs 1.11 or 1.22% to close at Rs 91.88 to the US Dollar. Dow Jones lost 260.60 points or 0.53% to close at 49,098.71 points. Dow gained on two of the four sessions and lost on two. 

There were two listings last week. The first was of Bharat Coking Coal Limited or BCCL which listed on Monday the 19th of January. Against an issue price of Rs 23, the share debuted at Rs 45.21 which was also the high and closed day one at Rs 40.66. By Friday, the share had shed some of its gains and closed at Rs 36.59, a gain of Rs 13.59 or 59.09%. 

The second share to list was Amagi Media Labs Limited which listed on Wednesday the 21st of January. Against the issue price of Rs 361, the discovered price was Rs 317.65 and the closing price Rs 348. This was the first share to close in the negative on the main board during calendar year 2026. The share recovered thereafter and closed at Rs 375.70, a gain of Rs 14.70 or 4.07%. 

There are no other main board issues slated to open in the coming week and it appears markets are now awaiting the presentation of the Union Budget on Sunday the 1st of February. 

The week ahead begins with a trading holiday on account of India’s 77th Republic day celebrations on Monday the 26th of January. Markets would trade on Tuesday with NIFTY futures for January expiring on that day. The mood is negative and with the kind of continuous selling by FPI’s over the last few months and the geo-political scenario, not much of optimism could be expected from the expiry. Further, the damage to share prices is across the board and not restricted to any one segment. 

NIFTY FUTURES are down 890.70 points or 3.43% at 25,048.65 points. The series had begun at 25,938.85 points. The best one could expect is the bulls to pull something back from the lost series. 

It is widely believed that India and the European Union would sign a trade deal which would be mutually beneficial to both. In terms of timing it could happen as early as Tuesday. However, considering that the long awaited India-US trade deal is yet to happen, one can at best be optimistic but not bank on it. On the positive side, if such a trade deal were to happen, expect the US to be forced into signing a trade deal with India, as their bullying tactics would have failed. In short, plenty of reason to be hopeful, but need to be patient. 

Lows made during the week were around 24,900 points, a level last seen during the beginning of October. While a lot of price damage has happened, the unfortunate part is that valuations have not improved significantly simply because early results from Q3 results have not been up to the mark. Everything and everyone is waiting for something to happen. 

Coming to Donald Trump and his famous tariffs, he has literally decided to dictate which country will do trade with whom. If it is not to his liking, then tariffs against that country for supply to US would be imposed at levels of 50 and 100%. One major point is that it is up to the exporting country to decide whether they want to export or not. Secondly, tariff is for importing into US, therefore the same is paid by the American, not the seller or shipper. Don’t know when this would become clear to all that matter. 

Coming to the short four day week which would end with Budget happening on Sunday, It would be choppy and volatile. A lot is likely to happen and will happen on various fronts. For sure things will not remain the same next Monday, but what would have transpired and what will be the impact, one will have to wait for the two important events. Trading levels for the week ahead would be support at 24,700 points on NIFTY and further down around 24,200-300 points. On the upside, one must look at initiating long trades only after the markets sustain 25,300 points. 

Bide your time, keep your fingers crossed and hope that the EU trade deal and budget brings cheer to the capital markets.

Markets were choppy and volatile. Geopolitical news seems to be dominating the world theatre currently. Whether Donald Trump is in the midst of beginning World War III or he believes no one takes him seriously has become a talking point. In the midst of all this turmoil, our markets gained on two of the four trading sessions and lost on two. At the end of the week while BSESENSEX lost 5.89 points or 0.01% to close at 83,570.35 points while NIFTY gained 11.05 points or 0.04% to close at 25,694.35 points. BANKNIFTY gained 843.60 points or 1.42% to close at 60,095.15 points. The broader markets saw BSE100, BSE200 and BSE500 gain 0.20%, 0.08% and 0.06% respectively. BSEMIDCAP lost 0.26% while BSESMALLCAP lost 0.42%. The top sectorial gainers were BSEMETAL which gained 4.52 points. The PSU banks fine performance helped the BSEBANKEX gain 2.02%. Similarly BSEIT chipped in with gains of 2.66%. The top loser was BSE CAPITAL GOODS which was down 2.49%. 

One very interesting facet of trading last week was the intraweek lows and highs made on the benchmark indices. The lows were made on Monday when markets broke the level of 25,500 points. They went down to record a low at 25,473.40 points. From there they rose in just one day to hit the intraweek high on Tuesday itself at 25,899.80 points and then corrected. Friday was a smart movement day, yet the high was 25,873.50 points and the close at 25,694.35 points. Similar levels on BSESENSEX were at 82.861.07 low made on Monday, intraweek high made on Tuesday at 84,258.03 points and high on Friday at 84,134.97 points. 

The Indian Rupee was under pressure and lost 61 paisa or 0.68% to close at Rs 90.77 to the US Dollar. Dow Jones gained on two of the five trading sessions and lost on three. It was down 144.74 points or 0.29% to close at 49,359.33 points. 

The PSU offering from Coal India’s subsidiary, Bharat Coking Coal Limited was a runaway success. It created a new record for receiving the highest number of applications ever by a PSU company. The record would now stand at 90.45 lakh forms, a feat which would need some beating. The earlier PSU record was held by LIC of India. In all issues, the record continues to be held by Waaree Energies Limited with a tad over 97 lakh applications.  The issue would list on Monday the 19th of January. The allotment price is Rs 23 per share. 

The US has proposed to levy additional tariffs of 10% on 7 countries of Europe over their ‘dangerous game’ of sending military to Greenland. The behavior of the US President seems to be like that of the spoilt brat who wants every toy that his friends have. Here, toy is territory. Next in line following Trump would be Putin in Ukraine and China in Taiwan. So much so for trade pacts and UN and so forth. Enough is enough. This has to stop sooner than later. Things just cannot go on like this. 

Markets are in a trading zone. We managed to take support at 25,500 points after going down last week. This area would act as support. Further at these levels there could always be downward pressure before a rebound. Similarly levels of 25,900 would act as short resistance and higher up at 26,200 points. Upward movement beyond that looks difficult and highly unlikely this month. 

The Union Budget would be presented on Sunday the 1st of February and trading on that day would be a normal day from 9 am to 3.30 pm. The same has been notified by exchanges already. Traders and investors could and should keep this in mind as there could be pleasant surprises in store considering the geo political situation currently. 

The trading strategy would be to lie low and allow the big bully make statements on a daily basis. At some point of time there would be revolt from within that nation as things take a turn for the worse. Till that happens we would have to tolerate this person. 

The time to be extra cautious in the markets in now and one would have to be on guard over the next 9 days before Budget day. 

Trade cautiously.