Sentiment: Bullish / Gap-up Opening
The Indian markets are set for a strong opening today, driven by positive global cues and a significant recovery in the Gift Nifty. While institutional selling persists in the cash segment, the sheer magnitude of domestic buying is providing a solid floor.
1. Global Cues & Gift Nifty Position
- Gift Nifty: Trading at 25,385, indicating a gap-up start of approximately +150 points relative to Nifty’s previous close.
- Global Markets: US markets ended in the green following President Trump’s Davos speech, which eased immediate trade war fears through a new “Greenland Trade Corridor” policy. Asian markets (Nikkei, Hang Seng) are also trading higher by 0.8–1.2%.
- Currency: USD/INR remains at a record low, hovering around 91.60, which continues to be a point of caution for FIIs.
2. FII & DII Activity (Jan 21, 2026)
Institutional activity shows a “tug-of-war” between foreign selling and domestic strength.
| Category | Net Value (Cr) | Action |
| FII (Cash) | -₹1,787.66 | Net Sellers |
| DII (Cash) | +₹4,520.47 | Net Buyers |
| FII Index Futures | -₹569.12 | Net Sellers |
| FII Stock Futures | +₹1,510.57 | Net Buyers |
3. FII Derivative Positions (Index Futures)
FIIs have maintained a cautious stance in the futures segment, though there is evidence of short-covering starting to trigger.
- Sentiment: Short-biased but transitioning.
- Long-Short Ratio: Currently at approximately 28% Long vs 72% Short.
- Net Position: FIIs remain net short in Index Futures, but the ₹1,500 Cr+ buying in Stock Futures suggests they are picking individual winners ahead of the earnings peak.
4. Technical Levels: Support & Resistance
Nifty is currently respecting its 200-day DMA near 25,100.
Nifty 50
- Resistance: 25,330 (Immediate), 25,475 (Major), 25,600.
- Support: 25,100 (200-DMA), 25,000 (Psychological), 24,920.
Bank Nifty
- Resistance: 59,300, 59,750, 60,200.
- Support: 58,600, 58,100, 57,800.
5. Option Chain Analysis (Jan 2026 Expiry)
- Call OI (Resistance): The highest concentration of Call writing is at 25,500 and 26,000 strikes. A move above 25,350 today could trigger a “Short Covering” rally toward 25,500.
- Put OI (Support): Significant Put writing is seen at 25,000 and 25,200, providing a strong intraday cushion.
- Put-Call Ratio (PCR): Stands at 0.76, suggesting the market is slightly oversold and ripe for a bounce.
6. News & Updates to Watch
- Corporate Earnings: Big names reporting today include Dr. Reddy’s, Biocon, HPCL, and Eternal. Expect high volatility in the Pharma and O&G sectors.
- Macro Data: US Initial Jobless Claims data is due tonight (Jan 22); consensus expects 203k–205k.
- Sector in Focus: IT & Metal sectors may outperform today following the dollar’s stabilization and recovery in global commodity prices.