On Tuesday morning, the Indian stock market opened on a positive note, with the benchmark indices, Nifty 50 and Sensex, making modest gains. This uplift can be attributed to a decrease in trade tensions coupled with a surge in foreign investments in the country’s market. The Sensex climbed impressively, up by 442.94 points, reaching 80,661.31, while the Nifty 50 advanced by 129.15 points to settle at 24,457.65.
Positive Trends in Asian Markets
Asian markets mirrored this optimism, with the MSCI Asia ex-Japan index rising by 0.5%. This increase comes as the dollar appears to be on the brink of its most significant monthly decline in years. Investors are closely monitoring the repercussions of the ongoing trade war on corporate earnings and economic indicators.
US Insights Boost Market Confidence
On Monday, Scott Bessent, the U.S. Treasury Secretary, provided encouraging news, stating that many key trading partners have proposed favorable tariff solutions. He hinted that an initial trade agreement with India could be signed as early as this week or next, a development that many traders view as a positive step for the Indian economy.
Market Analysis by Experts
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, shared insights into the current market dynamics. He noted that while the market has largely accounted for potential responses to recent terrorist activities, there is optimism that tensions will not escalate further. He highlighted the strong support from foreign institutional investors (FIIs), who have been active buyers for nine consecutive days, accumulating ₹34,940 crores during this period. This consistent buying could enhance market stability and potentially position India as a leader among major economies.
Nifty 50’s Performance
In the latest trading session, the Nifty 50 exhibited a 1.2% increase, largely driven by robust performances from Reliance Industries and the Pharma and Banking sectors. Despite global uncertainties, the index has shown strong buying interest, maintaining its position above crucial support levels. The index is trading above its 200-day Exponential Moving Average (DEMA), indicating bullish trends, with support levels at 24,050/23,800 and resistance levels at 24,400/24,650.
Stock Recommendations for Tuesday
ICICI Bank Ltd
Sachin Gupta, a Senior Research Analyst at 5paisa, recommends ICICI Bank Ltd as a stock to watch. The bank’s share price has shown a favorable technical outlook, breaking out above the 1,363 level last week. The stock has reached an all-time high, and its relative strength line indicates continued upward momentum. With support near the 200-day DEMA, analysts predict a strong upward trend, suggesting a buying range of ₹1,420-1,430 and a target of ₹1,492-1,545, with a stop loss at ₹1,349.
Oil and Natural Gas Corporation Ltd (ONGC)
Gupta also highlights ONGC Ltd, which is currently in a consolidation phase after breaking through a falling trendline. The stock has shown positive signals, surpassing the 100-day Exponential Moving Average and demonstrating increased buying interest above ₹252. If it maintains this level, potential targets could reach ₹265 and ₹275, with a recommended stop loss set at ₹239.
Conclusion
The Indian stock market is poised for a promising day ahead, buoyed by positive global cues and strong domestic support. Investors are advised to stay informed and consider the recommended stocks for potential gains. As always, it’s crucial to evaluate market conditions continuously and adjust strategies accordingly.
