Markets opened with mixed signals on Tuesday morning, with the trading marginally higher at 25,110.20, up 0.03 per cent from Monday’s close of 25,103.20. The opened at 82,643.73 but retreated to 82,410.49, down 0.04 per cent from its previous close of 82,445.21 as of 9.45 am.
Market participants continued to focus on ongoing US-China trade negotiations in London, which have emerged as the primary catalyst for near-term price movements. “Patience is needed. Efforts to deescalate US-China tensions are welcome, but a comprehensive agreement will likely take time,” said Vikram Kasat, Head – Advisory at PL Capital. “Investors will also be looking for concrete steps toward reaching lasting deals with other trading partners.”
The benchmark Nifty maintained its position above the psychologically important 25,000 level, with technical analysts identifying key support levels. “Key hourly averages i.e. 20 HMA and 40 HEMA at 24,945 and 24,870, respectively, will be the support levels in case of a correction or consolidation,” Kasat added, highlighting TataTech, Sagility, Wipro and IRB as trading stocks in focus.
Among individual stocks, Grasim emerged as the top gainer on the Nifty 50, surging 3.47 per cent to 2,699.00. IndusInd Bank followed with a 1.67 per cent gain to 850.65, while UltraTech Cement advanced 1.42 per cent to 11,420.00. Tech Mahindra and Bharat Electronics Limited rounded out the top five gainers, rising 1.24 per cent and 1.16 per cent respectively.
On the downside, ICICI Bank led the losers with a decline of 1.01 per cent to 1,420.30. Bajaj Finserv dropped 0.90 per cent to 1,999.20, while Eicher Motors fell 0.76 per cent to 254.90. Trent and HDFC Bank also posted losses of 0.72 per cent and 0.49 per cent respectively.
The commodities space witnessed significant volatility, with both precious metals and crude oil responding to the trade negotiations. “Gold and silver witnessed sharp volatility at the start of the week. Gold prices fell in early trade as the US and China resumed negotiations in London, but recovered from the day’s lows due to a weaker dollar and declining US bond yields,” explained Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Gold found support from the Chinese central bank’s continued purchases for the seventh consecutive month in May. “The Chinese central bank’s gold purchases for the seventh consecutive month in May also supported prices. Ongoing trade uncertainty continues to drive safe-haven demand,” Kalantri noted. Silver surged to fresh 13-year highs, with support levels at 36.10-35.80 dollars and resistance at 36.75-36.95 dollars.
Crude oil markets extended their upward momentum, reaching a 9-week high driven by trade negotiation optimism. “Crude oil continued its upward momentum, reaching a 9-week high as the US and China reopened trade negotiations in London. Hopes of a breakthrough in resolving trade tensions between the world’s two largest economies fueled buying interest,” Kalantri said. However, he cautioned that “market gains were tempered by Saudi Arabia’s recent push for OPEC+ to increase output by at least 411,000 barrels per day starting in August.”
Technical analysts maintained a cautiously optimistic outlook for the broader market trajectory. “Yesterday was an upside follow-through on Friday’s advance for the nifty. Technically speaking, whether it’s a pennant or a rectangle that the market is breaking out of, the implications are bullish with an objective of 25,800,” said Akshay Chinchalkar, Head of Research at Axis Securities.
The market structure suggested continued consolidation in the near term, with strategic sector positioning recommended. “On Monday, Nifty closed above the 25,000 mark, breaking through a key resistance level for the June series. The broader market is likely to stay strong, supported by positive trends and improving sentiment,” observed VLA Ambala, Co-Founder of Stock Market Today.
Sectoral performance showed mixed trends, with the Capital Market index leading gains at over 2.35 per cent, while selective profit booking emerged in Defence and Realty stocks. “Among the sectors, the Capital Market index was the top performer, gaining over 2.35 per cent, while selective profit booking was seen in certain Defence and Realty stocks,” noted Shrikant Chouhan, Head Equity Research at Kotak Securities.
Investment strategists emphasized the importance of global developments in shaping market direction. “From the global perspective, market participants will be keenly following the progress of trade talks between the U.S. and China. Even though there is optimism regarding a favourable outcome, it is unlikely to happen quickly,” warned Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
The broader market indices demonstrated resilience, with mid-cap and small-cap segments outperforming the benchmark. “Broader markets were strong too, with Nifty Mid-cap and Small-cap indices up 1.1 per cent and 1.6 per cent respectively,” reported Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighting the broad-based nature of the recent market advance.
Market participants await the conclusion of US-China trade talks, which are expected to provide the next directional catalyst for Indian equities as investors balance optimism against stretched valuations.