India-US Trade Deal Fuels Optimism on Dalal Street
The Indian stock market is set to open on a robust positive note this Tuesday, buoyed by the landmark announcement of the India-US trade agreement. This development has infused fresh optimism among investors, with expectations of a significant reduction in tariffs from the previous 50% to a more favorable 18%. The ripple effects of this deal are anticipated to be particularly beneficial for export-oriented sectors, which have long awaited such a breakthrough.
Market Experts Weigh In on the Positive Sentiment
Ponmudi R, CEO at Enrich Money, highlighted the immediate impact of the trade deal, stating, "Indian markets are likely to open on a strong positive note today, supported by upbeat global cues following the announcement of a key India–US trade deal. The reduction in reciprocal tariffs on Indian goods to 18% from 25% has significantly lifted global risk sentiment." He further emphasized that the GIFT Nifty is indicating a sharp gap-up opening, nearly 3% higher overnight, reflecting the widespread bullish sentiment.
Ponmudi R elaborated on the broader implications, noting that the trade deal offers a strong near-term sentiment boost, especially for export-oriented and manufacturing sectors. "Export-oriented segments such as auto, IT, defence, pharma, textiles, gems and jewellery are expected to respond positively to this development," he added. Additionally, he pointed out that the continued government focus on capital expenditure provides a steady underlying support for the broader market, ensuring sustained growth momentum.
Precious Metals Witness Significant Upswing
In parallel with the stock market optimism, precious metals have also experienced a notable surge. The COMEX gold and silver rates opened with substantial gains during early morning trading sessions. The COMEX silver rate today opened higher and quickly touched an intraday high of $84.550 per ounce, marking an impressive rise of over 9% compared to Monday's closing figures.
Similarly, the COMEX gold rate today opened with an upside gap and reached an intraday high of $4,870.54 per ounce within minutes, logging an intraday gain exceeding 4%. This simultaneous rally in both metals underscores the heightened investor interest in safe-haven assets amid global economic developments.
Anuj Gupta, a SEBI-registered market expert, provided insights into the outlook for these metals. "The COMEX silver rate today is in the $70 to $85 per ounce range. On breaking above the $85/oz hurdle, we can expect the white metal to reach the $93-$94 per ounce range," he explained. Regarding gold, he noted, "The COMEX gold rate today is in the $44,450 to $4,900 per ounce range. A bullish or bearish trend can be assumed on the breakage of either side of these ranges mentioned about gold and silver rates today."
Technical Analysis for Nifty 50 and Sensex
Shrikant Chouhan, Head of Equity Research at Kotak Securities, shared his perspective on the Nifty 50 and Sensex. "We are of the view that now, 25,000/81,500 and 24,900/81,200 will act as immediate support zones for the bulls. Above these levels, a pullback formation is likely to continue, with the market potentially moving up to 25,250/82,200 or the 200-day simple moving average (SMA). Further upside could also push the market toward 25,350/82,500," he stated, outlining key levels to watch for potential market movements.
Bank Nifty Outlook and Key Levels
Vatsal Bhuva, Technical Analyst at LKP Securities, discussed the Bank Nifty index's performance. "During the Monday session, the Bank Nifty took support near its 100-day moving average, indicating buying interest around lower levels. However, the RSI has entered a bearish crossover, suggesting that momentum remains weak in the near term," he observed. Bhuva added that for a reformation of the bullish structure, the index needs to close decisively above the 59,000 level. "On the downside, a strong support base is placed at the 100-day moving average in the 57,900–58,000 zone, while immediate resistance is seen near 59,000 levels," he concluded.
Intraday Stock Recommendations from Experts
Market experts have identified several stocks for potential intraday gains based on current market conditions. Here are the recommendations from three prominent analysts:
- Sumeet Bagadia, Executive Director at Choice Broking:
- Hindustan Petroleum: Buy at ₹453, Target ₹485, Stop Loss ₹437
- ITC Hotels: Buy at ₹185.65, Target ₹199, Stop Loss ₹179
- Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi:
- DLF: Buy at ₹625, Target ₹642, Stop Loss ₹610
- BEL: Buy at ₹439, Target ₹454, Stop Loss ₹430
- LTF: Buy at ₹277, Target ₹290, Stop Loss ₹272
- Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher:
- M&M: Buy at ₹3463, Target ₹3620, Stop Loss ₹3400
- HBL Engineering: Buy at ₹771, Target ₹815, Stop Loss ₹755
- Tourism Finance: Buy at ₹63.99, Target ₹70, Stop Loss ₹62
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
