**Market Brief: Pre-Budget Caution Deepens** **Date: January 25, 2026** **Market Pulse** Market sentiment has turned critically fragile ahead of the Union Budget on February 1. The Nifty 50 has breached the psychological **200-day moving average (DMA)** support, closing at **25,048.65** after shedding **241** points. This technical breakdown signals heightened bearish dominance, amplified by relentless foreign outflows and currency weakness. **Key Triggers** * **FII Exodus:** Foreign Institutional Investors (FIIs) have extended their selling streak to **13 consecutive sessions**, offloading over **₹36,000 crore** in January alone. * **Currency Pressure:** The Indian rupee has hit a fresh lifetime low of **91.99** against the US Dollar, exacerbating concerns over inflation and external balances. * **Sectoral Stress:** Selling is broad-based, with Realty and PSU Banks leading the decline. **Expert Strategy: LKP Securities** Rupak De, Senior Technical Analyst at LKP Securities, highlights the following for the January expiry: * **Trend:** The index is firmly under bearish control below the 200-DMA (approx. **25,160**). * **Critical Levels:** * **Support:** Immediate defense lies at **25,000–24,900**. A decisive break here could open downside targets toward **24,700**. * **Resistance:** Any relief rally is likely to face stiff selling pressure near **25,300–25,500**. * **Approach:** Traders are advised to adopt a "sell on rise" strategy. Aggressive long positions should be avoided until the index decisively reclaims the **25,300** mark. **Outlook** Volatility is expected to spike further as the Budget approaches. The primary trend remains weak, and sustaining above **25,000** is crucial to prevent a deeper sell-off. ----- **Next:**