The Indian stock market is poised for a robust opening on Tuesday, with benchmark indices Sensex and Nifty 50 expected to surge following the announcement of a significant trade agreement between India and the United States. The positive momentum is further supported by strong indications from Gift Nifty, which was trading at a substantial premium, signaling investor optimism.
Market Outlook After Trade Deal Announcement
President Donald Trump's announcement regarding the reduction of reciprocal tariffs on Indian goods from 25% to 18% has injected fresh confidence into the markets. Additionally, India's commitment to lowering its tariffs and non-tariff barriers against the US to zero has been viewed as a major step toward enhancing bilateral trade relations. This development comes after Monday's trading session, where the Indian stock market snapped a two-day losing streak, with the Nifty 50 reclaiming the crucial 25,000 level.
Sensex Technical Analysis and Predictions
On Monday, the Sensex rallied impressively, closing at 81,666.46 after gaining 943.52 points, representing a 1.17% increase. Technical analysts have identified promising patterns that suggest continued upward movement. Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted that the Sensex formed a bullish reversal pattern on intraday charts, indicating potential for further gains.
Key support and resistance levels for Sensex:
- Immediate support zones are identified at 81,500 and 81,200.
- A sustained move above these levels could drive the index toward 82,200 or the 200-day simple moving average (SMA).
- Further upside momentum might push the Sensex to 82,500.
Mayank Jain, Market Analyst at Share.Market, emphasized that reclaiming the 82,000 – 82,200 resistance zone is essential for a complete trend reversal. He noted that the 82,000 mark remains a significant psychological and technical barrier due to high Call Open Interest concentration.
Nifty 50 Technical Outlook
The Nifty 50 settled 262.95 points higher at 25,088.40, forming a bullish candle on the daily chart alongside an inside bar pattern. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, described this as a counterattack by bulls from recent lows, resembling a bullish Piercing line pattern.
Critical levels for Nifty 50:
- Immediate resistance is expected around 25,200 and 25,400 levels.
- Support is placed at 24,900, with further cushions at 24,800 and 24,680.
Nilesh Jain of Centrum Broking Ltd pointed out that the Relative Strength Index (RSI) has reversed from oversold territory, indicating improving momentum. A decisive move above the 200-day moving average around 25,210 could confirm a short-term trend reversal.
Bank Nifty Performance and Forecast
The Bank Nifty index ended Monday's session at 58,619.00, gaining 201.80 points or 0.35%. It formed a bullish-bodied candle on the daily chart, though the broader structure remains cautious as it trades below key resistance levels.
Bank Nifty key levels:
- Pivotal level at 58,400; sustained trade above this could lead to a pullback toward 58,900 – 59,100.
- Immediate resistance at the 50-day EMA zone (59,000 – 59,100).
- Crucial support zone at 58,100 – 58,000.
Ponmudi R, CEO of Enrich Money, and Sudeep Shah of SBI Securities both emphasized the importance of these levels for determining the index's near-term direction.
The overall market sentiment appears constructive, with analysts anticipating a follow-up move toward higher resistance zones. However, investors are advised to monitor key technical levels and consult certified experts before making investment decisions.
