Global Markets Surge as Modi-Trump Talks Spark Optimism
As the sun rose on Friday morning, a wave of positivity swept through the global markets, fueled by the promising discussions between leaders Modi and Trump. The delayed imposition of U.S. tariffs further buoyed investor confidence, setting the stage for a day of dynamic trading.
The Sensex kickstarted the day at a robust 76,388.99, a notable uptick from its previous close of 76,138.97. Similarly, the Nifty made a strong entrance at 23,096.45, surpassing its prior close of 23,031.40. However, by 9:35 AM, the indices had relinquished their initial gains, with the Sensex hovering at 76,129.11 (down 0.01 per cent) and the Nifty at 23,014.90 (down 0.07 per cent).
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., highlighted the potential game-changer in trilateral discussions aimed at resolving Russia’s prolonged conflict with Ukraine. Drawing parallels with Wall Street’s recent rebound, he emphasized the positive momentum expected from key stocks like Tata Steel, HDFC Bank, Reliance Industries, and Infosys.
Market Trends and Sectoral Shifts
Amidst the ebb and flow of the market, sectors like IT and FMCG experienced an early surge, while PSU banks and healthcare stocks faced a downward trend. Notable gainers included ICICI Bank (+0.63 per cent), HCL Tech (+0.57 per cent), Infosys (+0.53 per cent), Tech Mahindra (+0.47 per cent), and ITC (+0.46 per cent). On the flip side, Adani Enterprises (-2.68 per cent) and Adani Ports (-1.82 per cent) led the decliners, followed by Dr. Reddy’s (-1.39 per cent), Apollo Hospitals (-1.17 per cent), and Power Grid (-0.98 per cent).
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, underscored the cautious optimism stemming from the Modi-Trump talks and the deferred tariff threats. However, he cautioned that sustained market rallies might face headwinds due to ongoing foreign institutional selling.
Technical Analysis and Commodity Insights
As the Nifty 50 index oscillated between highs and lows, analysts observed resistance at key levels, with the call side showing a robust defense at 23,100 and 23,050. Meanwhile, put sellers at 23,000 hinted at a solid support base at that level.
Ameya Ranadive, Senior Technical Analyst at StoxBox, shed light on the Nifty’s precarious balance, highlighting the critical resistance at 23,300. He warned that breaching the 23,000 threshold early in trading could exert downward pressure on the index. Bank Nifty mirrored this bearish tone, struggling to maintain momentum and trading below crucial EMAs.
In the commodities arena, crude oil futures staged a modest uptick post the tariff delay announcement by President Trump. Brent oil futures stood at $75.18, up 0.21 per cent, while WTI crude hovered at $71.39, up 0.14 per cent. On the MCX, February crude oil futures traded at ₹6206, reflecting a 0.16 per cent gain.
Gold and silver prices witnessed heightened volatility, with safe-haven demand driving gold prices upward. Rahul Kalantri, VP Commodities at Mehta Equities Ltd., pointed to ongoing trade tensions and interest rate uncertainties as key influencers shaping precious metal trends.
Wrapping up the day’s insights, Ms. VLA Ambala, Co-Founder of Stock Market Today, drew attention to the critical juncture at which the Nifty finds itself, testing a five-year support trend at 23,000. Economic uncertainties and lackluster Q3 earnings continue to exert selling pressure, underscoring the need for a nuanced trading strategy.
Market aficionados are advised to keep a keen eye on global trade dynamics, institutional investments, and corporate earnings for cues on market direction. With resistance levels tightening, a cautious and calculated approach is paramount to navigate the ever-shifting market landscape.
