Indian stock markets extended their losing streak to a fifth consecutive session on 9 January 2026, as benchmark indices faced pressure from multiple headwinds including renewed US tariff concerns, cautions surrounding the Q3 2026 earnings season, and continued foreign capital outflows that weighed heavily on investor sentiment.

Market Performance Overview

The key indices registered significant declines during Friday's trading session:

According to analysts at Bajaj Broking Research, the Nifty 50 formed a bearish engulfing candlestick pattern on the weekly chart, signaling profit booking at higher levels. The index surrendered its entire previous week's gains and closed below the previous month's low, highlighting a downward bias. However, momentum indicators suggest the market has entered oversold territory, potentially setting up for a technical pullback.

Commodity Market Updates

Precious metals showed mixed performance during the session:

Anuj Gupta, a SEBI-registered commodity expert, noted that US-Iran developments regarding military deployment around Iran borders could accelerate the rally in gold and silver prices.

Expert Stock Recommendations

Despite the market weakness, technical analysts have identified eight stocks with favorable risk-reward profiles for 12 January 2026 trading:

Choice Broking Picks

Ashok Leyland Ltd: Buy at ₹188.00 with target price of ₹202.00 and stop loss at ₹181.00. The stock shows trend recovery signs after retesting all-time high zones, with all major EMAs trending upward and RSI at 74.35 indicating growing buying momentum.

Ipca Laboratories Ltd: Buy at ₹1,575.00 targeting ₹1,685.00 with stop loss at ₹1,520.00. The stock maintains a strong bullish trajectory after breaking out from a rounding base pattern, with RSI at 71.09 reflecting upward momentum.

Anand Rathi Recommendations

Prabhudas Lilladher Selections

Ramco Cements Ltd: Buy at ₹1,093.00 with target of ₹1,140.00 and stop loss at ₹1,070.00. The stock has moved past important moving averages at 1,025 and 1,050 levels, with RSI showing strength and upside potential.

Aarti Pharmalabs Ltd: Entry at ₹761.75 targeting ₹807.00 with stop loss at ₹744.00. The stock has risen steadily from 680 zone lows, moving past the 50EMA level at 756 zone with significant volume participation.

Asian Paints Ltd: Buy at ₹2,825.00 for target of ₹2,950.00 with stop loss at ₹2,770.00. The stock has been consolidating while maintaining support near the 50EMA level at 2,750 zone, showing bullish candle formation with volume participation.

Market Outlook

For the corrective decline to pause, analysts suggest the Nifty 50 must start forming higher highs and higher lows on a sustained basis while decisively reclaiming the 26,000 level. The current oversold conditions on momentum indicators provide some hope for a technical pullback, though sustained recovery will depend on addressing the underlying concerns about US trade policies and earnings season performance.

Indian equity markets are facing intensified selling pressure as technical analysts warn of further declines in both Nifty 50 and Bank Nifty indices. Market experts are advising caution and suggesting traders use any bounce as an opportunity to exit long positions rather than build fresh bullish bets.

Nifty 50 Technical Outlook

The Nifty 50 is displaying a decisively bearish setup following last week's significant decline. On January 9, the index dropped 194 points (0.75%) to close at 25,683, contributing to a weekly loss of 645 points. Market breadth remained heavily tilted toward bears, with approximately 2,317 shares declining compared to only 569 advancing shares on the NSE.

Technical analysts highlight that the index has breached the 50-day exponential moving average (50-DEMA), which had provided support for the past three months. The breakdown zone at 25,900 is now expected to act as intermediate resistance, while the 20-DEMA positioned around 26,000-26,050 presents a formidable barrier.

Expert Trading Strategies for Nifty

Multiple analysts are recommending sell-on-rally strategies with specific target and stop-loss levels:

Bank Nifty Analysis

Bank Nifty demonstrated relative weakness, declining 435 points (0.73%) to 59,252 on January 9, with a weekly loss of 899 points. The banking index has formed bearish reversal patterns and faces the risk of breaking below the crucial 59,000 level.

Technical structure suggests that if Bank Nifty sustains below 59,000, the next targets would be 58,800-58,700 levels. The index has been consolidating within the 60,300-58,700 range for eight consecutive weeks, indicating sideways movement with a negative bias.

Bank Nifty Trading Recommendations

Analysts are suggesting similar bearish strategies for Bank Nifty:

• Angel One: Sell on rise to 59,800, target 58,500, stop-loss at 60,200
• Axis Securities: Sell around 59,500, stop-loss at 59,750, target 59,100-58,900
• Lakshmishree: Sell on rallies toward 59,533, stop-loss above 60,000, target 58,737-57,580

Market Structure and Momentum Indicators

The technical deterioration is evident across multiple timeframes. Weekly charts show long bearish candles for both indices, with Nifty forming an outside reversal pattern that engulfed seven weeks of trading. Daily price action has confirmed violation of consolidation ranges, signaling sustained weakness.

Momentum indicators support the bearish outlook, as both daily and weekly RSI have turned negative and remain below reference levels. The inability of both indices to sustain above their respective 20-day and 50-day moving averages reinforces the near-term negative bias.

Risk Management Approach

Given the current market conditions, analysts unanimously recommend maintaining light positions and adopting a cautious stance. Any upward movement should be viewed as an opportunity to reduce long exposure rather than add fresh positions. The setup remains decisively bearish unless there is immediate recovery above key resistance levels.