Today, Indian Markets close higher on strong global cues, wherein, the Nifty recovers from early dip. Buoyed by positive global sentiment, the Nifty 50 opened with a gap-up at 22,476. However, initial profit-booking led to a dip, with the index marking an intraday low of 22,245. The downturn was short-lived, as the market staged a robust recovery, erasing early losses to hit an intraday high of 22,556 (As on 15:17). The rally was primarily driven by Metals, Oil & Gas, Energy, and Pharma, with all major sectors ending in the green. However, these segments emerged as the top gainers, fueling overall market optimism.
A key driver of today’s gains was China’s GDP growth forecast, which lifted sentiment. Beijing set a 5% growth target for 2025, despite ongoing trade tensions with the US. This optimism translated into a 1.3% surge in Nifty Metals, reflecting investor confidence in global economic resilience.
Meanwhile, in the US, President Donald Trump’s 25% tariffs on Canada and Mexico forced the auto industry to reassess production strategies. However, the White House provided temporary relief, announcing a one-month exemption for vehicles complying with USMCA’s rules of origin. Trump also hinted at a potential 30-day pause on tariffs, contingent on automakers expanding production in the US.
Overall, a combination of upbeat global trends and favorable policy developments fueled today’s rally, keeping Indian equities firmly in positive territory.
As per Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, the domestic benchmark index, Nifty, opened with a gap up, maintained buying interest, and settled the day on a bullish note at 22,545. Technically, Nifty has crossed and sustained above the first bearish gap (22,450-22,514), forming a green candle, which indicates strength. The next major resistance is around 22,668-22,720, where the next bearish gap is placed, followed by the previous breakdown point at 22,800. Thus, 22,720 and 22,800 will act as stiff resistance for the index. On the downside, 22,240 will act as immediate support. Though the overall market suggests strength, traders should wait for a move above 22,800. Until then, buy near support and take profits around resistance.
Furthermore, Bank Nifty opened with a gap up, faced profit booking in the first half, but recovered in the second half, and concluded the day on a positive note at 48,628. Technically, Bank Nifty has formed a red candle on the daily chart, indicating strong resistance near 48,660 levels. A sustainable breakout above this level could trigger a fresh move towards 49,000. On the downside, 47,840 remains firm support. Traders should closely watch these levels for potential trading opportunities.
Bajaj Broking Market Closing Commentary
Benchmark indices continued their upward momentum for the second consecutive session, primarily driven by solid gains in Reliance Industries, supported by other crude-sensitive stocks like Asian Paints and BPCL. The Nifty ended the session higher by 207 points, or 0.93%, at 22,544.70. The broader market also showed strength, with the BSE Small Cap index rising nearly 1.63% and the BSE Midcap index up by 0.65%. On the sectoral front, the Nifty Metal index led the rally, surging nearly 3%, followed by gains in the Nifty Energy, PSU and Nifty Oil & Gas indices. Metal stocks saw robust buying activity, fuelled by a drop in the US dollar index and optimism surrounding China's stimulus package. The US dollar index fell to a four-month low, benefiting emerging markets like India.
Nifty Outlook
Index formed a bullish candle with a long lower shadow, maintaining a higher high and higher low, indicating the continuation of the pullback. Looking ahead, a sustained move above Thursday's high of 22,556 could trigger further pullback towards 22,800-23,000 levels in the coming weeks. However, if the index fails to break above this level, it may result in consolidation within the 22,550-22,000 range, with stock-specific movements.
Bank nifty Outlook
Bank Nifty has formed a high wave candle with a higher high and higher low signalling consolidation after last two sessions pullback from the lower band of the last 8 weeks range placed around 48,000-47,800. We expect the index to trade in the range of 47,800-49,000 in the coming sessions. A breakout or breakdown from the range will signal the next directional move.
