Morning Action @ 7:00 AM — Thursday, January 1st 2025.

# Before we start, we would like to wish all our readers a wonderful new year filled with abundance, joy, and countless treasured moments.

Most importantly —— here’s wishing you a truly super-duper profitable 2026.

May your portfolios grow, your convictions strengthen, and every investment decision move you closer to your financial dreams.

# Our Call of the Day: Optimism shall greet Dalal Street, setting the tone for a constructive start to Indian markets as Santa-rally optimism glows brightly across Dalal Street on the first trading day of 2026.

We say so because Fear of missing out (FOMO) could actually be again seen ruling traders’ mindset as bargain hunting and value buying can be the preferred theme.

The traditional Santa Claus Rally window spans from December 24 through January 5, 2026 — keeping bullish hopes very much alive.

# Long Story Short: Nifty bulls will aim to move towards their all-time-high at 26326 mark.

# MARKET TRENDS:
Global cues: Negative
FII: (-3597.40 crores)
DII: (+6759.60 crores)
Sentiment: Bullish
Market Breadth: Positive
Technicals: Consolidation day
F&O: 25500 - 26500 zone.

INDIA VIX 9.48 (-2.09%)
USD/INR Futures (January) (90.15)
NIFTY PCR (27th January) 1.07
Bank Nifty PCR (27th January) 1.09

# Nifty Outlook: The silver lining remains firmly in place and Santa-rally optimism continues to glow across Dalal Street, supported by growing whispers of another quarter-point rate cut by the U.S. Federal Reserve and the RBI.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 26130):
SUPPORT: 26000/25871
RESISTANCE: 26326/26750
RANGE: 26050-26250
BIAS: Positive
21 DMA: 25989
50 DMA: 25938
200 DMA: 24933

SENSEX (CMP 85221)
SUPPORT: 84705/84150
RESISTANCE: 85739/86200
RANGE: 85000-86000
BIAS: Neutral
21 DMA: 85024
50 DMA: 84771
200 DMA: 81701

BANK NIFTY (CMP 59582)
SUPPORT: 59187/58737
RESISTANCE: 60115/60000
RANGE: 59300-60300
BIAS: Neutral
21 DMA: 59219
50 DMA: 58804
200 DMA: 55860

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# Wall Street wrapped up 2025 on a subdued note, with all three major indices posting modest losses in the final overnight session.

That said, U.S. equities still delivered a remarkable performance for the year, registering a third consecutive year of double-digit gains — an impressive achievement given the extreme volatility witnessed throughout 2025.

# Gold prices ($4317 per ounce) traded muted, below $4,350 an ounce as investors locked in profits after a run of record highs.

Meanwhile, Gold registered its strongest annual performance in more than four decades. Bullion has surged 65% this year, amidst positive catalysts like:

1) President Donald Trump’s global tariff rollout
2) Persistent geopolitical tensions: On the geopolitical front, uncertainty surrounding (a Russia-Ukraine peace deal, renewed tensions in the Middle East, and frictions between the US and Venezuela)
3) US interest rate cuts
4) Robust central bank purchases
5) Rising holdings in gold-backed ETFs.

# Silver ($71.26 per ounce) too traded muted, pressured by profit-taking after an end-of-year rally that notched a fresh record of $81.

# WTI crude oil futures ($57.41 per barrel) are in consolidating mode amidst a rise as geopolitical risks revived supply concerns.

# STOCK MARKET NEWS:

# It’s the first trading day of the year — 2026.

# And like we always do, we will go straight to the charts, and also start analyzing derivatives, fundamental and sentimental themes…

# But before that, we would like to wish all our readers a wonderful new year filled with abundance, joy, and treasured moments.

Most importantly —— a super-duper profitable 2026.

# Outlook for today’s session: The 1st session of 2026 has little in the way of fireworks.

# Our Call of the Day: Optimism is still likely to greet Dalal Street, with both Nifty and Bank Nifty keeping their all-time highs firmly in sight on an inter-week perspective.

“Fear of Missing Out (FOMO) is likely to dominate traders’ psyche, with bargain hunting and value buying emerging as the preferred themes.”

# Volatility is likely to be hallmark as waking up markets will be 2-catalysts like:

1) December monthly auto sales data to trickle in today.
2) FIIs were in a selling spree in yesterday’s positive session to the tune of Rs 3597.40 cr.

# Meanwhile, ‘Nifty ended 2025 With A Bullish Bang, Up 10.51%’ —— marking its 10th consecutive calendar year of positive returns — a remarkable show of market resilience and depth.

The performance of other sectoral indices for the Calendar Year 2025:

Nifty PSU BANK (+30.46%
Nifty Auto Index (+23.45%)
Bank Nifty (+17.15%)
Nifty INFRA Index (+13.62%)
Nifty PSE Index (+3.37%)

Nifty Reality Index (-16.57%)
Nifty Pharma (-2.94%)
Nifty FMCG Index (-2.33%)

Nifty Mid-Cap (+10.15%)
Nifty Small-Cap (-5.62%)

# STOCKS IN SPOTLIGHT:

1) Vodafone Idea (-11.53%, ₹ 10.67) slides despite AGR relief.

Shares of Vodafone Idea plunged in Wednesday’s trade despite reports suggested the Union Cabinet has approved an adjusted gross revenue (AGR) relief package for Vodafone Idea. The government has given its nod for a 5-year moratorium on the AGR dues of the telecom giant, the report added.

As on yesterday’s close, the stock slipped below its Follow-On Public Offer price of ₹11, highlighting investor concerns over the company’s long-term financial sustainability despite near-term regulatory support.

2) Bharat Forge (+1.06%, 1470) wins contract of Rs 1661.9 cr from Ministry of Defence.

# Now, here is the preferred trade on Nifty and Bank Nifty:

Nifty (26130): Buy at CMP. Stop 25733. Targets 26235/26326. Aggressive targets at 26500-26750 zone.

Bank Nifty (59582): Buy at CMP. Stop 58659. Targets 59800/60115. Aggressive targets at 60500-60700 zone.

# Our chart of the day is bullish on M&M, TVS MOTORS and GMR AIRPORT on any early excessive intraday weakness with an interweek/Intermonth perspective.

# The 1 Stock to Buy Right Now: Buy TVS MOTORS (CMP 3720): Buy at CMP. Stop at 3543. Targets 3755/3801. Aggressive targets at 3937. (Interweek Strategy). Rationale: Breakout Play from a higher consolidation zone on the daily charts. Signalling a massive surge on the upside. Key interweek support 3801. Major hurdles only at 3801 mark. Momentum oscillators are on the buy side.

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