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The Indian stock market enters the session of 29 January 2026 with a cautiously balanced tone. Global cues are mixed, derivatives data shows hedging activity, and benchmark indices are attempting to stabilise after recent volatility.
With the Union Budget just around the corner, traders and investors are increasingly selective, focusing on levels, liquidity flows, and short-term signals rather than aggressive positioning. Let us break down today’s market setup, covering global markets, FII activity, derivatives data, and the technical outlook for Nifty and Bank Nifty.
Overnight cues from global markets offer no clear directional push.
US markets ended on a mixed note, with the Dow Jones closing marginally higher, while Dow futures are currently trading lower. This suggests cautious sentiment ahead of key economic data and earnings commentary.
Asian markets are trading mixed in early hours, reflecting uncertainty rather than risk-on enthusiasm. For Indian markets, the early indicator, GIFT Nifty, is down around 74 points, hinting at a subdued or mildly negative opening.
In recent weeks, Indian markets have shown resilience despite global volatility. However, short-term traders should stay alert to intraday swings driven by global headlines.
One of the supportive factors for Indian equities remains domestic and foreign institutional participation.
Foreign Institutional Investors recorded net buying of approximately ₹480 crore in the cash market, while Domestic Institutional Investors added a strong ₹3,361 crore. This takes the combined net inflow to nearly ₹3,841 crore.
Such participation reflects confidence in India’s medium-term growth outlook, even as short-term uncertainty persists. It also aligns with SEBI-regulated transparency in institutional reporting, helping investors assess real money flow rather than speculation.
The derivatives segment presents a mixed picture.
The Nifty Put Call Ratio has moved to around 0.97, rising sharply from earlier levels near 0.70. This shift indicates increased put writing, suggesting some confidence near support zones but not outright bullish conviction.
India VIX has cooled by over 6 percent and now hovers around 13.5. Lower volatility often signals reduced panic, but it also means traders must manage risk carefully as sharp moves can still occur near event days like the Budget.
Options data shows the highest open interest at 26,000 on the call side and 25,000 on the put side for the upcoming expiry, with a max pain level near 25,300. This range may act as a magnet for price action in the near term.
Changes in FII index derivatives positions indicate hedged and cautious participation.
There has been addition in both long and short positions across futures and options. Call and put writing activity suggests range-bound expectations rather than directional aggression.
Such behaviour is common ahead of major policy events and reflects professional risk management rather than bearishness.
Nifty spot is attempting to form a base around the 24,900 zone, which has acted as a demand area in recent sessions.
Immediate support lies near 25,200 and 25,000. A decisive break below these levels could increase selling pressure, especially in the absence of fresh triggers.
On the upside, 25,450 and 25,600 remain strong resistance zones. Any move above these levels would require sustained buying and positive global support.
For positional investors, this phase calls for patience and stock-specific strategies rather than broad index bets.
Bank Nifty has shown a smart recovery from the 58,000 support zone, supported by selective buying in large private banks.
The index faces an immediate hurdle near 59,800. A breakout above this level could open the door towards 60,200 in the short term.
Key supports are placed at 59,200 and 58,800. As banking stocks carry significant weight in benchmark indices, their movement will play a crucial role in determining intraday sentiment.
For traders, today’s market setup suggests a range-bound to mildly volatile session. Option strategies focusing on defined risk may be more effective than aggressive directional trades.
For long-term investors, such consolidations often present opportunities to accumulate quality stocks aligned with India’s growth themes like infrastructure, manufacturing, banking, and energy.
SEBI-regulated platforms and research-driven brokers can add value during such phases by offering risk-managed insights rather than noise.
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Their daily market setup reports, technical views, and derivatives analysis are particularly useful for active traders and informed investors.
Is today’s market setup bullish or bearish?
The setup is neutral to mildly cautious, with strong supports holding but resistance zones still intact.
What does GIFT Nifty indicate for Indian markets today?
A negative GIFT Nifty suggests a subdued opening, but intraday direction will depend on global cues and institutional flows.
Should traders avoid positions ahead of the Budget?
Not necessarily, but risk management is critical. Smaller position sizes and defined-risk strategies are advisable.
Why is Bank Nifty important in today’s setup?
Bank Nifty heavily influences overall market sentiment due to its weight in benchmark indices.
How reliable is FII data for short-term trading?
FII data offers directional clues but should always be combined with technical levels and volatility indicators.
The market setup for 29 January 2026 reflects a phase of consolidation rather than conviction. With mixed global cues, supportive institutional flows, and clear technical levels, investors should stay disciplined and selective.
This is where research-driven decision-making matters more than speculation.
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