Stock Market Technical Analysis | 19 to 23 Jan 2026 Weekly Wrap

Markets turned sharply risk-off last week as volatility spiked and global cues weakened. Here’s a crisp breakdown of index action, sectoral trends, and derivatives positioning.

Key Market Highlights

• FMCG outperformed while Realty saw deep cuts of over 11%
• Midcap and Smallcap indices underperformed sharply
• India VIX surged 26.47%, signalling rising risk aversion
• FIIs sold ₹14,652 Cr; DIIs absorbed flows with ₹20,746 Cr buying

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• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded with negative bias in the previous week before closing with 2.51% cut at 25049 level. Banking Index lagged the benchmark index as it closed with 2.70% cut at 58473 level.
• Among the Nifty constituents, DRREDDY and HINDUNILVR outperformed the benchmark index as they closed with 5.11% and 2.08% gains while ADANIENT and WIPRO underperformed as they closed with 13.59% and 10.86% cut respectively. Among the Bank Nifty constituents FEDERALBNK outperformed the benchmark index as it closed with 3.07% gain while YESBANK underperformed the benchmark index as it closed with 10.83% cut.
• Among sectors, NIFTYFMCG index performed better than the benchmark index during the previous week as it closed with 0.92% cut while NIFTYREALTY index underperformed as it closed with 11.33% cut. Broader market underperformed the benchmark index as both MIDCAP index and SMALLCAP index closed with 4.55% and 5.81% cut respectively.
• Volatility index (India VIX) closed with 26.47% gain at 14.38 level.
• FII were net sellers as they sold stocks worth Rs 14,652 Cr while DII were net buyers as they bought stocks worth Rs 20,746 Cr during the previous week in the cash segment.
• Globally, equity markets traded with negative bias as both US market (DJIA) and European markets (STOXX 600) closed with 0.53% and 0.98% cut respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 25300 call and 24700 put with max OI at 25500 call and 24000 put side (27th Jan expiry). Nifty cumulative PCR closed at 0.70 for Jan 23.
• Derivatives data for Bank-nifty suggest max OI addition at 59200 call and 57500 put with max OI at 60000 call and 58000 put side (27th Jan expiry). Bank-nifty cumulative PCR closed at 0.71 for Jan 23.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded with negative bias in the previous week and closed with bearish candlestick formation on the weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 24,700 – 24,500 level and resistance at 25,400– 25,700 level

BANKNIFTY (WEEKLY)

• Banking index lagged the benchmark index and closed with bearish candlestick formation on the weekly chart
• Banking index is likely to trade in line with the banking index in the coming week
• Banking index has support at 57,500-57,000 and resistance at 59,500 -60,000 level

FINNIFTY (WEEKLY)

• FINNIFTY index performed in line the banking index and closed with bearish candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 26,400-26,200 level and resistance at 27,250-27,550 level.

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Market FAQs – Weekly Summary

Why did markets fall sharply?

Weak global cues, aggressive FII selling, and a spike in volatility led to broad-based selling.

Which sectors held up better?

FMCG showed relative resilience, while Realty and IT faced heavy pressure.

What does the rise in India VIX indicate?

A sharp rise signals increased uncertainty and near-term market volatility.

What do derivatives suggest for Nifty?

High call OI near 25,500 indicates resistance, with cautious sentiment prevailing.

Before You Trade, Strengthen Your Foundations with These Guides

• For a stronger understanding of indicators such as RSI, VWAP, and trendlines, check our 👉 Technical Analysis Fundamentals section.
• Want to refine your risk-reward planning? Explore our insights on 👉 Position Sizing & Risk Management Strategies.
• Understand the sectoral trends impacting stocks like Asian Paints. 👉 Consumer Durables Sector Analysis
• Learn how to interpret derivatives data for better trading decisions. 👉 Advanced Trading Strategies