The Indian stock market is poised for a robust opening today, riding a wave of positive global sentiment following the landmark India–US trade agreement. This pivotal deal, which slashes reciprocal tariffs on Indian goods from 25% to 18%, has injected optimism into global risk appetite, with GIFT Nifty signaling a substantial gap-up opening of nearly 3% overnight. This external catalyst is helping investors move beyond the recent volatility sparked by the Union Budget 2026–27, which introduced an unexpected hike in Securities Transaction Tax (STT) on derivatives, triggering a sharp sell-off, elevated trading costs, and pressure on futures and options (F&O)-heavy and brokerage stocks.
Market Recovery and Sectoral Focus
As the market gradually digests the Budget's implications, yesterday's rebound underscored selective value buying in key sectors. Infrastructure, defence, and large-cap stocks emerged as focal points, reflecting investor confidence in areas bolstered by continued government capital expenditure (capex) focus. The trade deal offers a significant near-term sentiment boost, particularly benefiting export-oriented and manufacturing sectors, while the government's steadfast commitment to capex provides underlying support for the broader market landscape.
Expert Insights on Market Sentiment
Sumeet Bagadia, Executive Director at Choice Broking, notes that the India-US trade deal has positively shifted market sentiment. He highlights that the technical chart pattern of the Nifty 50 index indicates renewed buying interest, suggesting a potential upward trajectory amid recovering momentum.
Nifty 50 and Bank Nifty Technical Outlook
Discussing the Nifty 50 outlook, Bagadia points out that the index closed at 25,088 on Monday, demonstrating resilience and buying interest at lower levels despite broader volatility. Immediate resistance is identified in the 25,200–25,250 range, with crucial support lying between 24,900 and 24,950. The daily Relative Strength Index (RSI) at 39.20 is trending upward, hinting at a mild recovery in momentum, though it remains in bearish territory.
For the Bank Nifty index, Bagadia observes a rebound of approximately 783 points from lower levels, driven by value buying and short-covering near key support zones, albeit with cautious overall sentiment. Immediate resistance is placed in the 58,900–59,000 zone, while the 58,300–58,400 support band is critical for maintaining near-term stability in the index.
Breakout Stock Recommendations for Today
Sumeet Bagadia has recommended five breakout stocks for intraday trading, based on technical analysis and market trends. These stocks are identified as potential opportunities for investors seeking short-term gains in the current market environment.
- eClerx Services: Buy at ₹4,842, target ₹5,200, stop loss ₹4,670.
- Karur Vysya Bank: Buy at ₹295, target ₹320, stop loss ₹286.
- Gland Pharma: Buy at ₹1,897, target ₹2,030, stop loss ₹1,830.
- Cantabil Retail: Buy at ₹291, target ₹310, stop loss ₹280.
- GVT&D: Buy at ₹3,290, target ₹3,540, stop loss ₹3,175.
Disclaimer: This content is intended for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms and do not reflect the stance of Mint. Investors are advised to consult certified experts before making any investment decisions.
