Stock Market Outlook Today, 12 Jan: Sensex, Nifty Likely to Trade in Tight Range Amid Risk-Off Sentiment

Indian equity markets are expected to open cautiously on Monday, January 12, as weak global cues, geopolitical tensions and negative technical signals continue to weigh on sentiment, even though domestic fund flow trends indicate sustained long-term confidence in equities.

Stock Market Outlook Today, 12 January 2026: Sensex, Nifty Prediction on Monday

Benchmark indices extended their decline for the fifth consecutive session on January 9, with the Nifty slipping below the 25,700 level. Markets remained in a clear risk-off mode amid lingering uncertainty over US-India tariff discussions and rising concerns over possible US trade measures linked to Russia-related sanctions.

Investor anxiety was further heightened ahead of the US Supreme Court's verdict on the legality of tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA).

At the close, the Sensex fell 604.72 points, or 0.72 percent, to 83,576.24, while the Nifty declined 193.55 points, or 0.75 percent, to 25,683.30. Broader markets underperformed, with the midcap index slipping 0.79 percent and the small-cap index dropping 1.81 percent. Sectorally, barring IT, PSU Bank and Oil & Gas, most indices ended in the red, with auto, FMCG, realty and consumer durables stocks declining 1-2 percent.

From a technical perspective, brokerages remain cautious on the near-term outlook. According to Bajaj Broking Research, Nifty has shown clear signs of profit booking on higher levels.

Nifty Prediction Today, 12 January 2026: What Traders Can Expect From The Market?

"Nifty on the weekly chart formed a bearish engulfing candlestick pattern signaling profit booking at higher levels as the index gave up its entire previous week's gains and closed below the last month low, highlighting a downward bias," the brokerage said.

The index is currently testing its 20-week EMA near 25,620, a critical support zone. A sustained breach could open the door for further downside towards 25,400-25,300, which marks the November lows. However, short-term indicators suggest the market is oversold.

"A technical pullback cannot be ruled out. However, for the corrective decline to pause, the index must decisively reclaim the 26,000 level and start forming higher highs and higher lows on a sustained basis," Bajaj Broking Research added.

Bank Nifty Outlook Today For 12 January 2026

"Bank Nifty on the weekly chart has formed a Dark Cloud Cover candlestick pattern indicating selling pressure at higher levels," Bajaj Broking Research said.

The index is expected to consolidate within the 58,800-60,400 range, while the 59,000-58,700 zone remains a crucial short-term support area, supported by the 50-day EMA and the previous month's low.

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