Indian indices finished the first trading session of 2026 largely flat as selective buying offset pressure from heavyweight losers. The BSE Sensex closed down 32 points at 85,188.60 after an intraday high of 85,451.70 and a low of 85,101.52. The NSE Nifty ended slightly higher at 26,146.55, up 16.95 points. The session reflected thin investor participation and a renewed focus on a handful of stocks that have begun to attract fresh interest.
Notable selling in ITC was a defining feature of the day. Shares of the FMCG and cigarette major plunged 9.69 percent, a move that weighed heavily on the broader market. Other large-cap names including Bajaj Finance, Asian Paints, Bharat Electronics and ICICI Bank also closed in the red. On the positive side, counters such as NTPC, Eicher, Mahindra & Mahindra, Larsen & Toubro and Power Grid recorded gains, providing pockets of stability.
Indian stocks to buy showing momentum
Among the names attracting strong buying interest were Transformers & Rectifiers, Vodafone Idea, Ajanta Pharma, Finolex Cables, Adani Gas, Aditya Birla Sun Life AMC and Indus Towers. Several of these stocks have cleared their 52‑week highs, a technical signal that traders often interpret as confirmation of renewed upward momentum. Finolex Cables and Adani Gas in particular stood out for their strength during the session, drawing attention from momentum and sector-focused investors.
Market participants attributed the selective strength to targeted accumulation in beaten-down or sectoral recovery plays rather than broad-based risk appetite. The rupee’s weakness versus the dollar added to market caution, but buying in mid- and small-cap segments helped offset declines among large-cap firms.
Technical indicators provided a mixed picture. The MACD flagged bearish signals for several stocks including Godfrey Phillips, ITC, CCL Products, Deepak Fertilisers, KPR Mill, AstraZeneca and United Spirits. For these names, the indicator suggests the risk of further downside or consolidation in the near term. Traders should treat MACD signals as one input among many and confirm with volume and trend analysis before making decisions.
From a sector perspective, the session highlighted divergence in market behaviour. Power, engineering and select industrial names outperformed, while consumer discretionary and financials experienced losses. Investors tracking the market should differentiate between transient profit-taking and structural weakness, particularly where earnings outlooks or sector-specific drivers remain intact.
For long-term investors, stocks that have breached 52‑week highs can indicate sustainable momentum, but such moves also attract short-term profit-taking. Short-term traders may look to capitalise on momentum in names such as Finolex Cables and Adani Gas, while longer-term investors should weigh fundamentals, valuations and corporate developments before increasing exposure.
Investors are reminded that the observations and suggestions in this report reflect individual analysts’ views and brokerage notes. They do not constitute NBT endorsement. Market conditions can change rapidly and readers should consult certified financial advisors or conduct their own due diligence before taking investment decisions.
Key Takeaways:
- Domestic markets closed mixed with Sensex marginally lower and Nifty slightly higher amid selective buying.
- Stocks such as Finolex Cables and Adani Gas have breached 52-week highs, signalling renewed momentum and identifying Indian stocks to buy.
- Heavy selling in ITC and other heavyweight names weighed on indices while NTPC, Mahindra and L&T showed resilience.
- MACD indicators warn of bearish pressure in some counters, underscoring the need for cautious stock selection.
