Fifth Straight Session Decline for Indices in India Stock Market

Mumbai, Jan 9, 2026: Indian benchmark indices continued their decline for a fifth consecutive session on January 9, with the Nifty falling below the 25,700 mark. Domestic markets remained in a risk-off mode amid persistent uncertainty over US–India tariff talks and escalating geopolitical tensions, especially concerns over potential US trade measures linked to Russia-related sanctions. Additionally, investors are keeping an eye ahead of key Q3FY26 IT earnings scheduled for release on Monday.

Investor sentiment was further dented ahead of the US Supreme Court’s verdict on the legality of former President Donald Trump’s tariffs. The court is expected to rule on Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs, including a 10 percent base levy and higher reciprocal duties on key trading partners.

At the close, the Sensex declined 604.72 points, or 0.72 percent, to 83,576.24, while the Nifty fell 193.55 points, or 0.75 percent, to 25,683.30.

The midcap index slipped 0.79 percent, and the small-cap index dropped 1.81 percent. Sector-wise, barring IT, PSU Bank, and Oil & Gas, all other indices ended in the red. Auto, FMCG, realty, and consumer durables stocks fell between 1–2 percent.

Nifty Outlook

Nifty on the weekly chart formed a bearish engulfing candlestick pattern signaling profit booking at higher levels as the index gave up its entire previous week's gains and closed below the last month low highlighting downward bias.

Nifty is currently testing the 20 weeks EMA placed around 25620. A follow through weakness below the same will open further downside towards the November low of 25,400-25,300.

On the shorter-term horizon, momentum indicators suggest the market is in an oversold territory. Therefore, a technical pullback cannot be ruled out. However, for the corrective decline to pause, the index must start forming higher high and higher low on a sustained basis and decisively reclaim the 26,000 level.

Bank nifty Outlook

Bank Nifty on the weekly chart has formed a Dark cloud cover candlestick pattern indicating selling pressure at higher levels.

Going forward, the index is expected to remain in a consolidation phase within the 58,800–60,400 range. A decisive breakout above this range or a breakdown below it will provide clarity on the next directional move.

Key short-term support zone lies at 59,000–58,700. This area is significant as it represents a confluence of the 50-day EMA and the previous month’s low, making it a crucial level to watch