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Stock market recap: Indian equities ended mixed on the first trading day of 2026, as stock-specific moves and a lack of fresh triggers kept sentiment subdued. The Sensex slipped marginally, while the Nifty 50 closed slightly higher. Midcaps outperformed, even as smallcaps edged lower.

ITC was the biggest drag after its shares fell on news of a higher tobacco excise duty. ICICI Bank and Bajaj Finance also weighed on the benchmarks. Gains in Larsen & Toubro, Infosys and Mahindra & Mahindra offered support, with investors staying cautious ahead of Q3 earnings and updates on India–US trade talks.

Best stocks to buy today (All buy trades are rates of equity and sell rates are based on F&O)

HEG: Buy above ₹625, stop ₹600 target ₹715 (Multiday)

ABCAPITAL: Buy above ₹363, stop ₹348 target ₹395 (Multiday)

UPL: Buy above ₹807, stop ₹790 target ₹830 (Intraday)

The Indian equity market began 2026 on a cautious yet positive note, with the NSE Nifty extending its previous session’s momentum in early trade. Strong buying across most sectors, barring FMCG and pharma, lifted the index close to the 26,200 mark during the morning session. However, profit booking around midday erased much of the initial gains, leading to a subdued close.

At the end of trade, the Nifty settled at 26,146.55, up 16.95 points, while the Sensex slipped 32 points to finish at 85,188.60. The broader market reflected mixed sentiment, with the BSE midcap index advancing 0.3% and the smallcap index ending flat.

The trading pattern remained narrow, highlighting consolidation at higher levels. Among Nifty constituents, Eternal, NTPC, Bajaj Auto, Shriram Finance, and Wipro emerged as top gainers, while ITC, Bajaj Finance, Dr Reddy’s Labs, ONGC, and Tata Consumer were notable losers.

Strong undercurrent on Thursday helped the Nifty survive the volatility of the market and ensured that the rise sustained above critical support zones as the market was whipped around quite a bit. At the moment the global trends remain the key drivers of the sentiment. There really isn’t much by way of local news flow to contain the volatility induced.

The long body candle moves seen were also reasonably large bringing in people to stage a steady buying participation through the day! Trading therefore was quite difficult thru the week and it would have been a wonder if one came out largely unscathed in the week. As one can see the Daily charts the prices have tread into strong resistance at the current close and will need more tailwinds that can fuel more upside.

The important part here is that at every possible the markets are seen heading higher. It is easier to target stock specific action instead of the broader indices. Right now, no clear synergy between the three main indices Nifty, Bank Nifty and IT one needs to see how the relevant stocks are performing.

The upward bias remains resolute but the prices are unable to take the journey ahead and the lack of However , we should note that despite repeated attempt to move higher Nifty has not been able to move beyond 26200 mark. The consolidation seen at the TS & KS lines shows that there is an alternating position getting created is indicating that the markets are definitely uncertain. The intraday charts reveal that the strong upward charge seen on Dec 31 is still awaiting some triggers to move beyond the value resistance zones marked on the charts. At 26200 the resistance remains a challenging one and this could open doors to 26300 in the next few sessions. Hence , it’s best to plan the trade and keep booking profits as we can conclude that the handover has been positive.

However, the resistance as shown by the Option Data indicates that the the Put writing at lower levels have helped the prices move higher and carry the PCR above 1 . With the Call writing slowly receding let us see how the trends will unfold. With the nearest Call writing at 26200 as well the level to watch out for in Nifty Spot is quite clear as we head into the last trading day of the week.

HEG (current market price ₹624.15) - Buy above ₹625, stop loss ₹600, target price ₹715 (Multiday)

Aditya Birla Capital (current market price ₹361.95) - Buy above ₹363, stop loss ₹348, target price ₹395 (Multiday)

UPL (current market price ₹805.35) - Buy above ₹807, stop loss ₹790, target price ₹830 (Intraday)

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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