Pressure in mid and small cap stocks, still strong earning opportunity in the new year, just know this secret.

By Samira Vishwas On Jan 2, 2026

Share Market Trading Tips: The market started 2026 on a positive note, but according to the data around 10:30 am, the market has slipped from its upper levels. Bank Nifty is trading flat. Pressure is also visible in mid and small cap stocks.

Reliance has made a good start to 2026 due to Jio’s strong subscription data. The stock is just 2 percent away from its peak. After about 18 months, the stock has reached near its upper levels. This year, Jio Telecom’s IPO is being considered as the biggest trigger for this.

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Good buying from lower levels has been seen in IT and public sector banks. Oil & Gas, Metal and select NBFC stocks are also performing well. However, there remains weakness in capital market and defense stocks. Both indexes are down about 1 percent.

There has been a sharp decline in ITC shares after the news of additional excise duty. The stock fell nearly 6 percent, making it Nifty’s top loser. Godfrey Phillips has also slipped by about 10 percent. The new duty on cigarettes and tobacco will be applicable from February 1. Weakness is also being seen in other FMCG stocks. FMCG index is down about one and a half percent.

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Escorts Kubota is performing well due to strong auto sales. The stock is trading with a rise of about 2 percent. The company has registered an increase of about 39 percent in tractor sales in December.

Shares of VST Tillers are also rising due to 30 percent increase in total sales. Similarly, the total sales of M&M have increased by 25 percent. There is a buying environment in auto stocks.

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Expert opinion on the market

Prashant Tapse, Senior VP (Research), Mehta Equities, says that this is the first trading day of 2026. No major explosion is expected, but a positive atmosphere may persist on Dalal Street.

Nifty ended the year in 2025 with a gain of 10.51 percent and has now entered 2026. This is the tenth consecutive year that Nifty has given positive returns. Both Nifty and Bank Nifty are keeping an eye on all time high.

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Value buying and bargain hunting is supporting the sentiment of traders due to FOMO i.e. fear of missing out. The market may remain volatile today due to December auto sales data and continuous selling of Rs 3,597.40 crore by FIIs.

Talking about shares, despite the AGR relief, Vodafone Idea has seen a sharp decline, while Bharat Forge has benefited from getting a defense order worth Rs 1,661.9 crore. The outlook on Nifty and Bank Nifty currently remains positive. During the fall, there may be buying opportunities in stocks like TVS Motors, M&M and GMR Airports.