Stock Market Outlook 29 Jan: Sensex, Nifty Today Likely To Trade Firm Amid Domestic Cues & Fed Policy Decision

Indian equity markets are expected to trade on a firm note on Thursday with the Nifty likely to test the 25,500 mark amid positive domestic cues and strong technical momentum. The broader market has been supported by optimism around the India-European Union Free Trade Agreement, while global investors remain cautious after the U.S. Federal Reserve's policy decision.

Stock Market Outlook Today, 29 January 2026: Nifty, Sensex Prediction Amid Fed Rate Cut Decision

On Wednesday, the Sensex gained 487.20 points, or 0.60 percent, to settle at 82,344.68, while the Nifty rose 167.35 points, or 0.66 percent, to 25,342.75. Sectoral gains were led by Media, Metal, Energy, Oil & Gas, Realty, and PSU Banks, which rose 1-4 percent. In contrast, FMCG, Consumer Durables, and Pharma ended the day lower. The Midcap and Smallcap indices outperformed, rising 1.66 percent and 2.26 percent, respectively.

"Investor sentiment remained buoyant after India and the European Union sealed a landmark free trade agreement, described as the "mother of all deals". The pact is expected to create a market of nearly two billion people and covers tariff reductions on 99 percent of Indian exports to the EU and over 97 percent of EU exports to India, together accounting for nearly a quarter of global GDP," said Gaurav Garg of Lemonn Markets Desk.

Nifty Prediction Today: How Indian Stock Market Will Trade After US FOMC Policy Decision

From a technical standpoint, Nifty's move above 25,180 signals a short-term reversal, with potential upside toward 25,500. However, analysts caution that failing to sustain above 25,400 could lead to consolidation, while a drop below 25,080 may weaken the near-term outlook.

"Nifty formed a second consecutive bullish candlestick pattern with a higher high and a higher low, signalling continuation of the pullback from the extreme oversold territory. A follow-through strength can see the index moving higher towards 25,500 levels in the coming sessions," stated Bajaj Broking Research.

The research note added that volatility is likely to remain elevated ahead of the Union Budget on February 1, 2026, and Nifty is expected to consolidate in the range of 24,900-25,550 amid stock-specific action.

Bank Nifty Outlook Today, 29 January 2026

The Bank Nifty also extended its gains. Bajaj Broking noted, "The Bank Nifty has formed a doji candle with a higher high and a higher low, signalling consolidation with positive bias. Only a move above the recent high of 60,400 will open further upside towards 61,500 levels." Analysts highlighted that short-term support lies at 58,000-57,500, while daily technical indicators are validating a positive bias.

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