Index Update: The Nifty 50 declined 241.25 points to close at 25,048.65 after a gap-up start but retreated from the day’s high, signalling a softer near-term tone. The index remains below its 50-day Simple Moving Average near 25,924.91, which continues to act as immediate resistance. Momentum has weakened, with the RSI easing to 29.12. On the downside, support is seen around 25,000, while resistance is placed near 26,500. A sustained move above 26,350 would be required to improve near-term confidence.

Macro Update: India’s macro momentum strengthened in January, with manufacturing, services, and composite PMIs rising sharply, indicating broad-based expansion. Strong domestic and export demand lifted output and new orders, while hiring resumed modestly. Input cost pressures edged higher but stayed manageable, enabling firms to pass on costs. Business confidence improved, supported by efficiency gains, marketing efforts, and favourable exchange rates.

Top Market Movers: On Friday, Dr. Reddy’s Laboratories Ltd (NSE: DRREDDY) led the gainers with a 1.49% increase, closing at INR 1,235.60 followed by Tech Mahindra Ltd (NSE: TECHM) up 0.81% at INR 1,701.10 and Hindustan Unilever Ltd (NSE: HINDUNILVR) which rose 0.79% to INR 2,409.50. On the downside followed Adani Enterprises Ltd (NSE: ADANIENT) saw the largest drop, falling 10.65% to INR 1,864.20 followed Adani Ports and Special Economic Zone Ltd (NSE: ADANIPORTS) down 7.48% to INR 1,308.40 and Eternal Ltd (NSE: ETERNAL), which dropped 6.23% to INR 258.70.

Commodity Update: The U.S. dollar was on track for its biggest weekly fall in a year after comments and reversals by Donald Trump unsettled investors. The Japanese yen traded near one-week lows ahead of the Bank of Japan policy decision. Gold rose 1.14% to USD 4,963.60, silver climbed 2.81% to USD 99.05, and copper gained 1.19% to USD 12,929.00. Brent crude slipped 1.80% to USD 64.06 as geopolitical concerns eased.

Our Stance: Market tone appears cautious following pullback from highs. Weak momentum below moving average suggests limited upside near term. Support around 25,000 remains critical. Macro strength offers cushion, yet elevated volatility, stock-specific pressure, commodity swings warrant selective positioning, disciplined risk management until technical clarity improves confidence returns gradually ahead for investors.

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