Indian stocks are likely to open weak amid this broad global risk environment and follow-on pressure from yesterday’s sharp domestic decline, said Ponmudi R, CEO of Enrich Money.
Renewed US tariff threats, coupled with continued selling by foreign investors, continue to weigh heavily on market sentiment, he said. He added that the rupee remains vulnerable, leaving import cost risks high, while third-quarter earnings so far are mixed to weak across several heavyweights, particularly in the IT, auto, real estate and financial sectors.
According to analysts, third quarter results so far are at expected levels or disappointing. They say the focus now shifts to the upcoming Union Budget.
Most experts expect selective buying, especially in the small and mid-cap sectors.
“Ahead of the Union Budget on February 1, expectations of an increase in capital expenditure in railways, defense and consumption support remain constructive, but these positive developments are not yet strong enough to counter the prevailing global uncertainty. In the near term, technical upswings may emerge if DII inflows absorb supply or if FII sales decline, but investor confidence in the sustainability of such moves remains low in the current environment,” he further said.
Volatility increased during the session, with India’s VIX rising 7.63 percent to 12.73, underlining increased caution and risk aversion among market participants.
Aakash Shah, technical research analyst at Choice Broking, said derivatives data indicates heavy call writing at the 25,500 strike and significant put writing at the 25,100 strike, making this band a key near-term pivot zone. Traders are advised to remain selective and take a cautious but constructive approach near key support levels. New directional positions should only be considered after a decisive breakout above the indicated resistance levels.
Published on January 21, 2026
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