Nifty Outlook: The benchmark index of the stock market touched a new record level on Friday. Nifty remained firmly above the important level of 26,325 and registered gains for the third consecutive trading session. During this period, the index broke the strong resistance zone of 26,200 to 26,300. It also reached a new all-time high of 26,340 during trading.
However, US attacks on Venezuela may have an impact on the global market as well as the Indian market. Let us know from the experts how the movement of Nifty will be on Monday, January 5 and which levels will be important. But, first let us know what special happened in the market on Friday.
Market remained strong throughout the day
On Friday, the market started with a slight rise, but this rise became stronger in the initial and mid session. There was a slight decline in the last part of the trading, but investors considered it an immediate buying opportunity. For this reason, Nifty managed to close near the day’s upper levels.
Record closings, gainers and losers
Nifty closed at its highest ever closing level of 26,328 with a gain of 182 points. Coal India, NTPC and Hindalco were the biggest gainers in the index. At the same time, ITC, Kotak Mahindra Bank and Nestle India put some pressure on the market momentum.
PSU and metal shine
Sector-wise, except FMCG, all other sectoral indices closed in the green. Realty, PSU banks and metal stocks led the market rally and strengthened investor confidence.
Midcap-smallcap showed strength
The performance of the broader market also remained strong. The Nifty Midcap 100 index closed at its new all-time high, up 1 per cent. Nifty Smallcap index registered a gain of 0.70 percent. It is clear from this that purchasing was not limited to just big shares.
Support to electronics sector
An important news came out at the policy level. The Ministry of Electronics and Information Technology has approved 22 proposals under the Electronics Components Manufacturing Scheme. There is a possibility of investment of about Rs 41,863 crore and production of about Rs 2.58 lakh crore in these projects.
GST collection increased, but…
Talking about macro figures, GST collection in the month of December increased by 6.1 percent on annual basis to Rs 1.75 lakh crore. However, due to high refund amount, there was some decline in net domestic collection.
Geopolitical tension increased again
With the beginning of the new year, geopolitical risks have once again emerged. America launches ground attack on Venezuela. The news of the detention of President Nicolas Maduro and his wife has come to light.
Crude oil-precious metals in focus
This geopolitical tension could impact many asset classes including crude oil and precious metals. Venezuela has large oil reserves as well as gold and other metals. This may increase volatility in the global commodity market.
Fear of impact on global market
Initially negative reaction may be seen in the American stock markets. Because this time America is directly involved in this conflict. This situation is considered different from conflicts like Russia-Ukraine or Israel-Iran seen in 2025.
US equity markets enter 2026 after three consecutive years of double digit returns. In such a situation, the effect of any sharp reaction there can be seen on the stock markets around the world.
Expert opinion on Nifty
On the technical front, Nagaraj Shetty of HDFC Securities said that in the next one to two weeks, the next upside target of Nifty is seen around 26,750. Whereas immediate support is near 26,200.
According to Rupak Dey of LKP Securities, the short term trend of Nifty remains strong. He said that as long as the index remains above 26,000, the strategy of buying on dips will remain in favor of bulls. He believes that a decisive breakout above 26,350 could take Nifty towards 26,600 in the short term.
Strong breakout signal
Nilesh Jain of Centrum Broking said that Nifty is trading above all important short term and long term moving averages. Due to this the overall trend remains positive. The base has now shifted to the zone of 26,100. In such a situation, there is scope for Nifty to move towards 26,500 in the short term.
Nandish Shah of HDFC Securities said that Nifty has strongly crossed its earlier swing highs of 26,236 and 26,325. This indicates a strong breakout from the consolidation phase.
According to Shah, now that the index has reached uncharted levels, the path for a rise to 26,500 and above seems open in the short term. Also, immediate support has also increased to around 26,100. This can provide support during short-term downturns.
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