Market Watch: Nifty Consolidates, Bank Nifty Shows Strength Ahead of Jan 7 Open

• Nifty 50 saw profit booking, closing lower and breaking a support trendline on January 6, signaling short-term caution.
• Bank Nifty outperformed, showing relative strength and a positive bias, sustaining above its support trendline.
• Nifty's crucial support is at 26,000, with resistance at 26,300–26,400; Bank Nifty's key levels are 59,500 (support) and 59,500/60,000 (resistance).
• Nifty Put-Call Ratio dropped to 0.92, indicating a slight bearish sentiment, while India VIX declined but remains above short-term moving averages.
• Significant stock activity includes long build-up in 58 stocks, short build-up in 72 stocks, and SAIL, Sammaan Capital remaining under F&O ban.

Why It Matters: Nifty faces consolidation and potential bearish sentiment, while Bank Nifty shows relative strength for Jan 7.