Indian Stock Market Poised for Strong Opening on Trade Deal Optimism
The Indian stock market is anticipated to commence Tuesday's trading session on a powerful note, fueled by renewed optimism surrounding the recently announced India-US trade agreement. President Donald Trump's declaration regarding reciprocal tariff reductions has injected positive sentiment into the market, with trends on Gift Nifty indicating a substantial gap-up opening for the benchmark indices, Nifty 50 and Sensex.
Trade Deal Details and Market Impact
In a significant development for bilateral trade relations, President Trump confirmed the reduction of reciprocal tariffs on Indian goods to 18%. Simultaneously, he announced that India would reciprocate by lowering its tariffs and non-tariff barriers against American products. This mutual agreement is expected to enhance trade flows between the two economic powerhouses, creating favorable conditions for market growth.
The previous trading session witnessed a remarkable recovery in Indian equities, breaking a two-day losing streak. The Nifty 50 successfully reclaimed the psychologically important 25,000 level, while the Sensex demonstrated impressive strength with substantial gains.
Previous Session Performance
On Monday, the benchmark indices posted significant advances. The Sensex surged by 943.52 points, representing a gain of 1.17%, to close at 81,666.46. Meanwhile, the Nifty 50 settled 262.95 points higher, marking a 1.06% increase, at 25,088.40. This robust performance set a positive tone for the upcoming sessions.
Technical Analysis and Market Outlook
According to Chandan Taparia, Head of Derivatives & Technicals at Motilal Oswal Financial Services, the options data reveals interesting patterns. The maximum Call Open Interest (OI) is positioned at the 25,500 strike, followed by the 25,200 strike. Conversely, the maximum Put OI is concentrated at the 24,500 strike, with the 24,800 strike following closely.
"Call writing activity is observed at the 25,200 and 25,100 strikes, while Put writing is visible at the 24,800 and 24,900 strikes," Taparia noted. "The option data indicates a broader trading range between 24,700 and 25,700 zones, with an immediate range likely between 24,900 and 25,300 levels."
Nifty 50 Technical Perspective
The Nifty 50 formed a bullish candle accompanied by an inside bar pattern on the daily chart and is currently trading near its 200-day moving average (DMA). "As long as Nifty 50 maintains levels above 25,000, we can expect strength to rebuild toward 25,250 and subsequently 25,350 levels," Taparia explained. "However, if it falls below this threshold, some weakness toward 24,900 and then 24,700 could emerge."
Bank Nifty Performance and Outlook
The Bank Nifty index gained 201.80 points, or 0.35%, closing at 58,619.00 on Monday. The formation of a bullish-bodied candle with a long lower wick on the daily scale suggests substantial buying support at lower levels. "For Bank Nifty to experience a bounce toward 59,000 and then 59,250 levels, it must cross and sustain above 58,750 zones," Taparia stated. "Failure to maintain this level could lead to weakness toward 58,250 and subsequently 58,000 zones."
Recommended Stocks for Consideration
Chandan Taparia has identified three stocks with potential for Tuesday, February 3, 2026:
- Hindustan Petroleum Corporation Ltd (HPCL): Taparia recommends buying with a target price of ₹480 and a stop loss at ₹438. The stock has rebounded from its 200 DEMA support zones after forming a bullish "hammer" candlestick pattern. The RSI indicator shows positive momentum, confirming the upward movement.
- Ashok Leyland: This stock is in a sustained uptrend, consistently respecting its 20 DEMA support zones with minor dips being actively purchased. The rising ADX line confirms the strength of this uptrend. Taparia suggests buying with a target price of ₹206 and a stop loss at ₹189.
- Jindal Steel: The share price is currently retesting its breakout from a consolidation zone, supported by higher-than-average trading volumes on the daily chart. The rising MACD indicator confirms the bullish sentiment. Taparia maintains a 'Buy' recommendation with a target price of ₹1,200 and a stop loss at ₹1,090.
Disclaimer: The views and recommendations presented above are those of individual analysts or brokerage firms and do not represent the official stance of Mint. Investors are strongly advised to consult certified financial experts before making any investment decisions.
