Gaurav Garg, 

Lemonn Markets Desk

Mumbai, 27 January 2026: “Indian equity benchmarks rebounded sharply from early losses on Tuesday, with the Sensex and Nifty turning positive after a weak start, supported by firm global cues, easing crude prices and optimism around the proposed India–European Union trade agreement.

Buying interest was led by heavyweight stocks such as Axis Bank, Adani Ports, UltraTech Cement, Bharat Electronics, Tata Steel, NTPC, State Bank of India and Tech Mahindra. Axis Bank gained over 4 percent after reporting a modest rise in December quarter profit. In contrast, Kotak Mahindra Bank and Asian Paints fell more than 4 percent as its quarterly earnings failed to meet investor expectations.

Market sentiment improved on multiple supportive cues. Optimism surrounding the India–EU free trade agreement buoyed sentiment, although caution exists that the agreement is unlikely to have an immediate economic impact as it is expected to be operational only from 2027. The recovery in the rupee from record low levels, along with a softer dollar index, also aided domestic equities.

Additional support came from expectations of a possible reduction in US tariffs on India and liquidity-enhancing measures announced by the Reserve Bank of India, which plans to inject over USD 23 billion into the banking system through bond purchases, forex swaps and repo operations.

From a technical standpoint, we remain cautious. The Nifty continues to trade below its short-term moving averages, indicating a fragile setup. 25,300 zone is seen as immediate resistance, while 25,000 remains a key support level. Momentum indicators remain subdued, though oversold conditions could trigger short-term, stock-specific relief rallies.”

Shrikant Chouhan, Head Equity Research, Kotak Securities, adds:

Today, the benchmark indices witnessed a volatile trading session. After a roller-coaster activity, the Nifty ended 127 points higher, while the Sensex was up by 320 points. Among sectors, the Metal Index was the top gainer, rallying 3.35 percent, whereas the Media Index lost the most, shedding over 1 percent. Technically, after an early morning intraday dip, the market took support near 24,900/81000 and bounced back sharply. From the day's lowest level, the market rallied over 300/950 points. On daily charts, the index has formed a long bullish candle, and on intraday charts, it formed a promising reversal pattern, which is largely positive.

We are of the view  that 25,000/81,400 and 24,900/81,000 would act as key support zones. As long as the market trades above these levels, a pullback formation is likely to continue. On the higher side, 25,200/81,800 would be the immediate resistance zone for the bulls. A successful breakout of 25,200/81,800 could push the market up to 25,300-25,350/82,200-82,400.

On the flip side, below 24,900/81,000, sentiment could change. If the market falls below this level, traders may prefer to exit their long positions.