Stock Market Outlook, 8 Jan 2026: Sensex, Nifty Today Expected to Trade Steady; Q3 Results, US Data in Focus

Indian equity markets are expected to trade cautiously on Thursday, 8 January 2026, following a three-day decline amid geopolitical concerns and profit booking in key sectors. After the Sensex slipped 102 points on Wednesday, the Nifty also declined by nearly 38 points. Investors are likely to watch domestic earnings updates closely. Global cues will also play an important role in market direction.

Additionally, key US macroeconomic data, including Non-Farm Payrolls and JOLTS Job Openings, are expected to influence trading sentiment.

Stock Market Outlook Today, 8 January 2026: Sensex, Nifty Prediction For Thursday Trading Session

Market analysts suggest that while short-term consolidation may continue, quality large- and mid-cap stocks in IT, consumer durables, jewellery and FMCG could see selective buying, as indices hold critical support levels around 26,000 for Nifty and 59,500 for Bank Nifty.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, noted, "Indian equity markets ended marginally lower for the third straight session amid global geopolitical concerns and persistent FII outflows. The Nifty50 slipped 38 points to close at 26,141 (-0.1%). Broader markets outperformed, with the Nifty Midcap100 and Smallcap100 rising 0.5% and 0.4%, respectively."

Khemka further added, "In 3QFY26, gold prices surged, rising ~60% YoY and ~20% QoQ. Despite this steep inflation, consumer demand for top brands remained resilient, supported by a strong festive season and sustained momentum during the wedding period."

He also noted positive developments in the FMCG sector, with Dabur, Marico, and Godrej Consumer reporting strong performances. "Standalone businesses are expected to deliver double-digit revenue growth (est: 8% vs 3% in 3QFY25), with close to double-digit underlying volume growth," Khemka said.

Nifty Prediction Today for Thursday, January 8, 2026

According to Bajaj Broking Research, the Nifty has formed a doji candle with a lower high and lower low, signaling a continuation of consolidation with a corrective bias after last week's strong rally. The brokerage expects the index to remain in a range of 26,000-26,370 in the near term.

"We believe the overall structure remains positive, and the current breather should be used to accumulate quality large- and mid-cap stocks from a short-term perspective. Nifty has key support around 26,000-25,900, being the confluence of the 50-day EMA and the rising demand line joining the last four months' lows," Bajaj Broking said.

The brokerage added that a move above Wednesday's high of 26,187 could open the upside toward the upper band of the range around 26,350. "Overall, we expect the index to hold above the support area and gradually head higher toward 26,500 initially, followed by 26,800-26,900 levels from a short-term perspective," it said.

Bank Nifty Prediction Today for Thursday

Bank Nifty also saw consolidation on Wednesday, forming a small bearish candle with a long lower shadow, indicating stock-specific action around all-time highs. Bajaj Broking expects the Bank Nifty to trade in a range of 59,500-60,400, forming a higher base for the next leg of the up move.

"We expect the index to gradually head higher toward 61,400 levels from a short-term perspective, being the measuring implication of the recent range (60,100-58,800). On the downside, immediate support is placed at 59,500, while key short-term support lies at 59,000-58,800 levels. Sustaining above these will keep the overall bias positive," the brokerage added.

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