Stock Market Outlook 28 Jan 2026: Nifty, Sensex Likely to Trade Higher Post India-EU Deal; Oil Stocks in Focus

Indian equity markets are expected to open on a positive note on 28 January 2026, tracking optimism around the finalised India-EU Free Trade Agreement (FTA) and firm global cues. Analysts anticipate range-bound trading with high volatility, as investors digest monthly F&O expiry impacts, upcoming Union Budget developments and ongoing Q3 earnings.

Stock Market Outlook Today, 28 January 2026: Nifty, Sensex Prediction Today

After a choppy session on Tuesday, 27 January, the Nifty staged a strong recovery from intraday lows of 24,932 to close near the day's highs at 25,175.40, up 126.75 points (+0.51%). The Sensex gained 319.78 points (+0.39%) to close at 81,857.48.

Stocks in Focus Today: Sector-wise Shares Performance

Sectoral activity remained mixed, with strong buying seen in Nifty Metal, Banking, and Oil & Gas stocks, while Nifty Media, Auto, and FMCG witnessed profit booking. Broader markets also remained supportive, with the Nifty Midcap index rising 0.59% and the Small Cap index advancing 0.41%.

Equity markets witnessed a choppy session with sharp intraday swings in key benchmark indices, driven by the monthly F&O expiry and mixed global cues. Despite the volatility, the Nifty recovered smartly from early lows to end at the day's highs, supported partly by short covering and largely by optimism surrounding the India-EU FT.

"The India-EU pact is expected to enhance market access for Indian exporters, particularly in pharma, auto ancillaries, textiles, and chemicals, while keeping certain sensitive sectors excluded. Coupled with liquidity measures from the RBI, including USD 23 billion injections through bond purchases and forex swaps, the overall sentiment is positive," said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

Nifty Prediction Today, 28 January 2026: What Traders Can Expect Today?

According to Bajaj Broking Research, Nifty has formed a bullish candlestick with a lower shadow, indicating buying demand at lower levels. Analysts expect the index to trade in the 24,800-25,500 range, with 25,400-25,500 acting as key resistance. "Holding above the 25,000-24,800 support may lead to consolidation, while a decisive break below this could extend the decline in coming sessions," the brokerage noted.

Bank Nifty Outlook Today

Bank Nifty is also showing signs of recovery. Bajaj Broking observed a bullish engulfing pattern on the daily chart, suggesting buying interest near the 100-day EMA. "Key support is at 58,000-57,500 levels. Holding above this opens the upside towards 60,000-60,400 levels. The daily stochastic has generated a buy signal, validating a positive bias," the report added.

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