Nifty below 26,000: Key levels to watch and trading strategy ahead

Indian stock markets fell sharply on January 8, 2026, with Sensex down 780 points and Nifty below 26,000 amid US tariff fears. Analysts suggest support, resistance and strategy ahead for markets

Market fall: Nifty, Sensex levels to watch and strategy for traders

 

Stock market outlook: Indian stock markets extended their losing streak on Thursday, January 8, 2026, as heavy selling dragged benchmark indices lower amid heightened concerns over India-US trade tensions. Reports suggesting that the Donald Trump administration could impose tariffs of up to 500 per cent on Indian goods rattled investor sentiment and triggered broad-based risk aversion.

 

The BSE Sensex plunged as much as 851 points, or 1 per cent, to an intraday low of 84,110, while the Nifty50 slipped below the crucial 26,000 level, falling 282 points, or over 1 per cent, to 25,858. Over the past four sessions, the Sensex has shed nearly 1,500 points and the Nifty about 480 points, underscoring sustained selling pressure in the market.  At the market close, Sensex was at 84,180.96, down 780.18 points or 0.92 per cent, and Nifty50 was at 25,876.85, down 263.9 points or 1.01 per cent.    Track market highlights here

  Sectorally, metals, information technology, pharmaceuticals, PSU banks and automobile stocks bore the brunt of the sell-off. With markets navigating heightened volatility ahead of the Union Budget, Q3FY26 earnings season and lingering uncertainty over the India–US trade deal, analysts are outlining key levels to watch and trading strategies for the sessions ahead. 

Anand James, Chief Market Strategist, Geojit Investments Limited

 

The broader trend for the Nifty50 index has turned negative. However, the downtrend in the index, which gained momentum since it touched record high, has brought short-term oscillators in the 'oversold' zone. They are in the vicinity of December 30 lows. Thus, an attempt at a possible recovery cannot be ruled out if 25,878 is protected.  A break below 25,776, however, would indicate that the Nifty is breaking the sideways trading range on the downside, prompting us to consider possibilities of sharper fall with 200-day SMA positioned deep at 25,039.

ICICI Direct

Global development and the onset of the earning season could keep the Nifty50 index volatile in the near-term, present incremental buying opportunity. The index has a strong support placed at 25,700 – the level being the lower band of ongoing consolidation range of 25,700-26,300.

 

A follow through strength above 26,300 (on a closing basis) could open the door for a target of 26,800 zone in coming weeks, if risk appetite improves. 

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today's fall in the Nifty index, below 26,050, and the Sensex’s decline below 84,600 will likely accelerate the selling pressure in the market. The downside is open till 25,950-25,900 on the Nifty and 84,300-84,200 on the Sensex.

 

On the higher side, 26,200 (Nifty) and 85,100 (Sensex) will act as key resistance areas, going forward. A successful breakout above these levels could push the market towards 26,260-26,300 (Nifty) and 85,300-85,500 (Sensex).

 

The strategy should be to buy between 26,150 and 26,100, with a final stop loss at 26,050.

Aakash Shah, Technical Research Analyst,Choice Equity Broking

The near-term bias appears slightly cautious for the Nifty index. The index has broken its immediate support of 26,000–26,050. Traders are, thus, advised to remain disciplined and avoid aggressive trades during early volatility. On the upside, the resistance is seen near 26,250–26,300.

 

The Bank Nifty index has also broken its key support zone of 59,700–59,800, which is set to invite further selling pressure.

 

A sustained move above 60,200–60,300 is needed to negate the negative trend.        ================  Disclaimer: The views and investment tips expressed by the brokerage(s) in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.