On Tuesday, Indian stock markets experienced a notable upswing, with benchmark indices Nifty 50 and Sensex rallying in response to positive signals from the United States. After US President Donald Trump hinted at potential additional tariff exemptions, investor sentiment improved markedly. Early trading saw the Nifty 50 and Sensex surpass their closing values from April 2, reaching 23,332.35 points and 76,617.44 points, respectively. This marks a significant recovery from the losses sustained following Trump’s earlier tariff announcements.
Market Performance Overview
By 11:58 IST on Tuesday, the Nifty 50 had surged by 2.11%, climbing to 23,311.60, while the Sensex experienced a 2.10% increase, reaching 76,739.73. This movement indicates a potential rebound as markets respond to the easing of tariff tensions.
- Nifty 50: Up 2.11% to 23,311.60
- Sensex: Up 2.10% to 76,739.73
- Comparison: Both indices surpass April 2 closing figures
Expert Insights
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the S&P 500 has seen a 9% rise since April’s lows, largely attributed to the suspension of tariffs. In contrast, the Nifty 50’s recovery has been more modest at only 3%, suggesting room for growth. Market observers expect that this gap, combined with short-covering, may bolster the market’s performance throughout the day.
Technical Analysis
Riyank Arora, a Technical Analyst at Mehta Equities, provided insights on current market dynamics:
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Nifty 50: Currently at ₹23,280, facing resistance at 23,350. Profit booking is anticipated as the index approaches this level. Key support levels are identified at 23,000 and 22,900. Caution is advised for new purchases, with a preference for waiting for a dip.
- Bank Nifty: Trading at ₹52,070, the index has reached its resistance around 52,000. Selling pressure is evident from the 52,300 mark. A sustained move above this level could pave the way for further gains towards 53,000. A stop-loss at 51,800 is recommended for long positions.
Stock Recommendations for Short-Term Gains
Arora has identified three stocks poised for potential short-term success:
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Kotak Mahindra Bank Ltd
- Current Price: ₹2,117
- Stop-Loss: ₹2,080
- Target: ₹2,200
- The stock has recently surpassed key moving averages, indicating a bullish trend. With an RSI of 58, further upside appears likely.
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Tata Consumer Products Ltd
- Current Price: ₹1,100
- Stop-Loss: ₹1,050
- Target: ₹1,200
- A breakthrough above crucial resistance signifies strong momentum. The RSI of 70 indicates potential overbought conditions but supports continued upward movement.
- Mazagon Dock Shipbuilders Ltd
- Current Price: ₹2,577
- Stop-Loss: ₹2,473
- Target: ₹2,750
- This stock has experienced a recent breakout, suggesting bullish momentum is re-emerging. An RSI of 56 supports the upward trajectory.
Conclusion
The Indian stock market is reacting positively to external cues, with potential for further growth as investors remain hopeful amidst tariff discussions. Traders should stay vigilant, considering expert insights and technical analyses for informed decision-making in this dynamic environment. For more investment advice, don’t forget to check out our recommendations on stocks to buy today.
