Markets Close Lower Amid Broad-Based Selling, Rupee at Record Low

Mumbai, Jan 23, 2026: The market failed to build on the previous session’s sharp rebound and closed lower on January 23, with volatility persisting and widespread selling emerging amid a weaker rupee and continued FII outflows.

At the close, the c. For the week, both the Sensex and the Nifty registered losses of around 2.5% each.

Selling pressure was broad-based, with all sectoral indices ending in the red. Capital goods, power, realty, PSU banks, and media stocks bore the brunt, shedding 2–3% as investors adopted a cautious stance and reduced exposure across the board.

The broader market underperformed the benchmarks, with the midcap index sliding 1.8% and the small-cap index dropping 1.95%.

Meanwhile, the Indian rupee remained under pressure, hitting a fresh intraday record low of 91.97 against the US dollar before settling at 91.96, weaker than the previous close of 91.62.

KEY HIGHLIGHTS

• Sensex dropped 769 points; Nifty closed below 25,100
• All sectoral indices ended in the red; PSU banks and realty worst hit
• Midcaps and small caps underperformed benchmarks
• Rupee hit a fresh record low near 91.97 per dollar
• Nifty approaches key long-term support near 25,000

Nifty Outlook 

Nifty on the weekly chart has formed a sizable bearish candle with a lower high and lower low highlighting continuation of downward bias for the third week in a row. Pullback attempt during the week meet with strong selling pressure as the index closed around the 52 weeks EMA.

Nifty is currently placed around the lower band of the rising channel of the last seven months which also coincides with the 52 weeks EMA placed around 25,000-24,800 levels. A breach below the same will signal extension of the decline towards 24600-24,500 levels.

Weekly stochastic is approaching oversold territory after 1400 points decline in just 14 sessions. Hence, holding above the support area of 25,000-24,800 will lead some consolidation in the range of 24,800-25,500 in the coming weeks. On the higher side 25,400-25,500 will act as immediate resistance for the coming weeks.                                

Bank nifty Outlook

The Bank Nifty on the weekly chart has formed a sizable bearish candlestick pattern with a lower high and a lower low signaling corrective bias. The index closed below the 50 days EMA signaling corrective bias.

The index has generated a breakdown below last 7 weeks consolidation range (58800-60400) highlighting weakness. A follow through selling pressure will open further downside towards 57,600 and 57000 levels in the coming weeks

On the higher side 59,000 will act as immediate resistance, only a move above that will open further upside towards 59,600 levels.

Conclusion

Indian equity markets ended lower on Friday as persistent selling pressure weighed on sentiment throughout the session. The pressure was broad-based, with all major indices ending in the red. Realty, PSU Banks, Media, and Energy stocks bore the brunt of the selling, reflecting risk-off sentiment across the market. On the macro front, the rupee slipped to a fresh all-time low of 91.95 against the US dollar, further dampening investor confidence. Additionally, stock-specific earnings-related reactions added to the downside pressure during the session. In the derivatives segment, market breadth remained heavily skewed towards the declining side. Notable open interest buildup was observed in stocks such as Paytm, Cipla, Phoenix Ltd, Bajaj Finserv, and Lodha, indicating active positioning.

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Courtesy: Bajaj Broking, Ashika Institutional Equities