On Friday, Indian stock market enthusiasts can expect a surge in trading activity as the Nifty 50 and Sensex indices are poised for a boost. This optimism follows a strong rally in global markets, triggered by US President Donald Trump’s recent announcement to pause tariff hikes for a period of 90 days, excluding China. The Indian markets were closed on Thursday in honor of Shri Mahavir Jayanti, but the excitement over this unexpected policy shift is likely to energize investors.
Global Market Reactions to Tariff Suspension
Trump’s decision to freeze tariff increases comes as a reversal from previous aggressive measures that had caused uncertainty among investors worldwide. The announcement has been met with enthusiasm across global stock markets. Notable movements include:
- Tokyo’s Nikkei 225: Increased by 9.13%
- South Korea’s Kospi: Climbed 6.60%
- Hong Kong’s Hang Seng: Rose by 2.06%
- Shanghai SSE Composite: Up by 1.16%
European markets also reacted positively, indicating a widespread relief among investors.
Indian Market Trends and Expert Insights
Before the holiday, on Wednesday, the Nifty 50 fell by 0.61% to close at 22,399.15, while the Sensex decreased by 0.51% to finish at 73,847.15. Market analysts had anticipated a downturn due to Trump’s tariff strategies, which overshadowed any positive sentiments from a potential rate cut by the Reserve Bank of India (RBI).
Pranay Aggarwal, the Director & CEO of Stoxkart, expressed optimism about a recovery in the Indian markets, fueled by the newly announced tariff suspension. He cautioned, however, that sectors severely impacted by tariffs, such as pharmaceuticals and seafood exports, may still face challenges ahead.
Analyzing the Nifty 50 Outlook
Osho Krishan, Senior Analyst at Angel One, provided insights into the current market dynamics. He noted a slight bearish sentiment among investors, with many adopting a cautious approach as the holiday season approaches. The formation of a small-bodied candlestick after days of volatility suggests investors are looking for stability before making significant moves.
Key technical levels to monitor include:
- Support Level: 22,000
- Bullish Gap: 22,300-22,250 (expected to act as a protective barrier)
- Resistance Levels: Start around 22,500-22,600, with a critical gap at 22,700-22,850
A breakout above these resistance levels could restore investor confidence and signal a positive market shift.
Upcoming Earnings and Market Sentiment
As the quarterly earnings season kicks off, the market will closely watch the results from TCS, a major player in the IT sector. The performance of such companies will significantly influence market outlooks in the coming weeks. Investors are advised to stay updated on both domestic and international developments to navigate the current economic landscape effectively.
Stocks to Watch: Recommendations for Friday
On Friday, investors should consider two stocks highlighted by Osho Krishan:
-
ACC Ltd: This stock has shown impressive growth, climbing nearly 200 points recently. With a surge in trading volume and a breakthrough above its 51-day exponential moving average (DEMA), ACC is set for potential gains. A buy recommendation is suggested around ₹1,980-1,960, with a stop-loss at ₹1,870 and a target of ₹2,150.
- Colgate Palmolive (India) Ltd: After experiencing a downward trend, this stock is gaining momentum and nearing its 50-day DEMA. The increase in trading volumes and a rising 14-period RSI indicate a shift toward a bullish trend. Investors are advised to buy Colgate Palmolive around ₹2,500, with a stop-loss at ₹2,400 and an anticipated target of ₹2,700.
Conclusion
As excitement builds around the stock market in India, influenced by global events, investors are encouraged to remain vigilant and informed. Watching for earnings reports and ongoing trade discussions will be crucial for navigating this period of uncertainty and potential growth.
