Domestic markets are likely to remain volatile as global sentiment remains weakened amid persistent geopolitical tension triggered by the US. Gift Nifty indicates some stability for the Indian markets after it was mauled by bears on Tuesday. Meanwhile, Asian stocks are ruling weak, as Japan’s bond market witnesses a sell-off, triggering a chain reaction across asset classes. Precious metals gold and silver continue to enjoy the momentum.
Indian equities are likely to open on a weak note amid this broad global risk-off environment and follow-through pressure from yesterday’s sharp domestic decline, said Ponmudi R, CEO of Enrich Money.
Renewed US tariff threats, coupled with persistent foreign investor selling, continue to weigh heavily on market sentiment, he said, adding that the rupee remains vulnerable, keeping import-cost risks elevated, while Q3 earnings have so far been mixed to weak across several heavyweights, particularly in IT, Auto, Realty and select Financials.
According to analysts, Q3 results so far have been either on expected lines or underwhelming. They say the focus now shifts to the upcoming Union Budget.
Most experts expect selective buying, especially in the small- and mid-cap space.
“Ahead of the Union Budget on February 1, expectations of a capex push in railways, defence and consumption support remain constructive, but these positives are not yet strong enough to counter the prevailing global uncertainty. Short-term technical bounces may emerge if DII inflows absorb supply or if FII selling eases, but investor confidence in the sustainability of such moves remains low in the current environment,” he further said.
Volatility picked up during the session, with India VIX rising 7.63 per cent to 12.73, underscoring heightened caution and risk aversion among market participants.
Aakash Shah, Technical Research Analyst, Choice Broking, said derivatives data indicates heavy call writing at the 25,500 strike and significant put writing at the 25,100 strike, establishing this band as a key near-term pivot zone. Traders are advised to remain selective and adopt a cautious yet constructive approach near key support levels. Fresh directional positions should be considered only after a decisive breakout above the stated resistance levels.
Published on January 21, 2026
