GIFT Nifty signals subdued start for stock market, Sensex weekly expiry in focus

Sensex, Nifty Today: Indian equity markets are likely to open on a subdued note on Thursday, January 8, tracking mixed global cues and weak early signals from GIFT Nifty.

GIFT Nifty Today

At 08:20 am, GIFT Nifty futures were trading at 26,173, down 53.5 points or 0.20 per cent. This indicated a cautious start for benchmark indices Sensex and Nifty 50. Market sentiment may also be influenced by the weekly expiry of Sensex futures.

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Market recap

On Wednesday, domestic benchmarks extended losses for the third straight session amid mixed global signals.

The Sensex slipped 102 points, or 0.12 per cent, to close at 84,961.14. The Nifty 50 fell 38 points, or 0.14 per cent, to end at 26,140.75.

In contrast, broader markets outperformed. The BSE Midcap index gained 0.47 per cent, while the Smallcap index rose 0.12 per cent.

Nifty and Bank Nifty levels

The Nifty remained weak for the third consecutive day and slipped to a one-week low. The index formed a lower high and lower low pattern for the second straight session, signalling short-term weakness.

However, Nifty has managed to stay above its 50-day moving average of 25,971 for 68 sessions. This level now acts as a strong support.

Bank Nifty also formed a lower high and lower low for the second day in a row. Despite this, the index closed at 59,990, marking its fourth-best lifetime closing level. It has stayed above the 59,700 mark for five consecutive sessions.

After failing multiple times to cross the 59,700–59,800 zone in December 2025, Bank Nifty broke above this level on January 2, 2026, to hit a new lifetime high. The same zone is now seen as a strong support.

Midcap and smallcap outlook

The Midcap Select index appears to be at a crucial “make or break” level. After two days of weakness, the index bounced back and hit a one-month intraday high. It closed with a higher high and higher low formation, indicating strength.

The index is just 65 points away from its previous lifetime high of 14,118 recorded on December 1, 2024. A sustained move above 14,125 could trigger a major breakout.

The Smallcap index also showed signs of consolidation. It closed in the green while trading within the previous day’s range. The index has been hovering near a one-month high for three days but is facing resistance near 18,000.

A close above 18,100 could lead to a sharp breakout. Any selling pressure is expected around the same zone.

Sectoral and volatility trends

The Pharma index touched an 11-month high. India VIX remained weak for the second consecutive day and closed at 9.9, indicating low volatility expectations.

FII and DII activity

Foreign institutional investors continued to remain cautious. FIIs reduced their index futures long positions and sold Rs 1,528 crore in the cash market on Wednesday.

Across cash, index futures, and stock futures, FIIs remained net sellers for the third straight day, with total selling of Rs 4,237 crore.

In contrast, domestic institutional investors continued their strong buying streak. DIIs bought shares worth Rs 2,899 crore, marking their 92nd consecutive session of net buying.

Global market cues

In global markets, the Dow Jones and S&P 500 touched fresh lifetime highs during intraday trade. However, the Dow later saw its biggest single-day fall since November 18, dropping 466 points from its peak.

The Nasdaq remained strong for the third straight session.

The rupee strengthened by 29 paise and touched a one-week high. The dollar index hovered near 98, close to a one-month high.

Gold snapped its two-day rally and traded lower, remaining Rs 2,456 below its lifetime high of Rs 1,40,465 hit on December 26, 2025. Silver recently hit a record high of Rs 2,59,692 but corrected sharply thereafter.

Base metals saw profit booking. Copper fell 2.6 per cent, its biggest drop since October 10. Aluminium slipped from a five-year high, while nickel declined 4 per cent, marking its sharpest fall since April 4.

Arabica coffee prices, however, rose to a one-month high.