Mumbai, January 28, 2026 β The Indian equity benchmark, Nifty 50, displayed robust momentum today, decisively reclaiming the 25,300 mark during mid-day trade. Following a period of consolidation and a long holiday weekend, the index is benefiting from a “double-trigger” of positive sentiment: a landmark trade agreement with the European Union and the lead-up to the Union Budget 2026.
As of 12:15 PM, the Nifty 50 was trading at 25,316.30, up approximately 0.56% from its previous close. This recovery comes as a relief to investors after the index tested psychological support near 25,000 earlier this week.
Technically, the Nifty has formed a constructive “higher-high” pattern on the hourly charts, indicating that the short-term trend has shifted from cautious to cautiously bullish.
The zone between 25,350 and 25,450 remains a formidable hurdle. A sustained closing above 25,450 could trigger a “short-covering” rally toward the 25,600 level.
On the downside, 25,100 has emerged as immediate support, followed by the critical psychological floor at 25,000. Analysts suggest that as long as the index holds above its 200-day Exponential Moving Average (EMA) near 25,140, the broader “buy-on-dips” structure remains intact.
The primary driver for today’s surge is the optimism surrounding the India-EU Free Trade Agreement (FTA). The deal is expected to provide a significant boost to export-oriented sectors, particularly Textiles, Marine products, and Metals.
The Nifty Metal index outperformed, surging over 2.5% today. Heavyweights like Hindalco and Tata Steel are leading the pack on expectations of improved global demand and reduced tariffs.
While Foreign Institutional Investors (FIIs) have remained net sellers in January, Domestic Institutional Investors (DIIs) continue to provide a solid cushion, absorbing selling pressure with consistent inflows.
With the Union Budget 2026 just days away, market participants are positioning themselves in sectors likely to receive policy tailwinds, specifically Infrastructure, Green Energy, and Railways.
While Nifty 50 captures the headlines, Bank Nifty is showing even greater relative strength, trading comfortably above 59,200. The banking index is being supported by strong Q3 earnings from private heavyweights and a decline in the India VIX, which has dropped nearly 4% to 13.58, signaling reduced fear in the market.
Broader markets are also joining the party, with the S&P BSE Mid-Cap and Small-Cap indices jumping nearly 0.9% each, suggesting that retail participation is returning to “quality” stocks after the recent correction.
For intraday traders, the current environment demands a “buy-on-pullback” strategy near the 25,150β25,200 zone. However, with the US Federal Reserve’s interest rate decision looming tomorrow and the high-stakes Budget session beginning today, volatility is expected to remain elevated.
Investors are advised to maintain strict stop-losses and avoid aggressive over-leveraging until the Nifty decisively clears the 25,450 resistance on a daily closing basis.
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