Opening Bell - 05 / 01 / 2026

Opening Bell - Morning Commentary

Indian Markets look set to surge to record levels in the new year's first full trading week.

US stock markets navigated a holiday-shortened last week marked by early volatility and net weekly losses despite intraday recoveries.

Indian stock markets demonstrated resilience throughout the holiday-thinned week, closing higher on low volumes driven by year-end positioning.

Optimism was fuelled by robust GDP growth (8.2%), strong automotive sales, encouraging updates in the banking sector, anticipation of Budget 2026, and expectations of favourable US trade deal.

Asian equities reached record highs as investors extended their positioning in technology stocks. Oil prices fluctuated while precious metals gained.

The Trump administration launched what it termed a "large-scale strike against Venezuela," capturing President Maduro to face criminal charges. Trump announced the US will administer Venezuela until a "safe, proper, and judicious transition" can occur. As we expected in our Annual market strategy, crude oil is likely to remain subdued through the year on a gradually rising supply.

MSCI's Asian stock index surged 0.7% at the open after a closely watched technology gauge reached an all-time high. US equity-index futures also rose as Asian trading commenced following the Venezuelan president's ouster, creating a fresh geopolitical flashpoint.

Nifty has decisively breached previous swing-high resistance levels at 26,236 and 26,325, confirming a decisive breakout from its prior consolidation range. With the index now in uncharted territory, near-term upside targets extend toward 26,500 and beyond. Immediate support has shifted higher to approximately 26,100, likely providing a near-term floor during pullbacks.

As expected, FPIs have begun covering their short positions in index futures.

Indian markets are positioned to open higher on positive global cues.