Indian Markets Rebound as Global Signals Mix

Indian markets opened higher despite mixed global cues, with Sensex gaining over 250 points. Positive sentiment stems from President Trump's tariff negotiations and PM Modi's US visit. Resistance and support levels key for market movements, while strong India-US relations enhance economic outlook.

The Indian benchmark indices showed resilience, opening higher on the last trading session of the week, despite facing mixed global cues. The Sensex rose over 250 points, starting at 76,388.99, while the Nifty 50 began at 23,096.45. This positive opening follows a series of declines, as observed in the previous seven sessions.

A market expert, Ajay Bagga, highlighted that positive cues persist despite President Trump's announcement of forthcoming reciprocal tariffs on global trade partners by April 2025. He pointed out that the potential resolution of tariff issues in the next 40 days has kept US markets buoyant. Bagga further added that factors like the Union Budget, the RBI MPC rate cut, and PM Modi's US visit have been beneficial for the Indian economy, although foreign portfolio investors' outflows remain a concern.

Observing the technical aspects, Varun Aggarwal, MD of Ideaprofit, indicated that the short-term trend for Nifty is positive, with a crucial resistance at 23,250. A breakout above this can lead to a trend reversal. Current open interest data suggests resistance at 23,100 while support seems firm at 22,800. Despite a gravestone doji on Thursday, suggesting market indecision, Nifty safeguarded the 23,000 threshold, which aligns with the 78.6% Fibonacci retracement level.

The MACD indicator remains negative, hinting at a downside bias, but oversold momentum indicators suggest a possible rebound. Asian markets mirrored Wall Street's positive tone post Trump's tariff roadmap announcement. Furthermore, stronger India-US ties, with plans to enhance defense collaborations and increase bilateral trade to USD 500 billion by 2030, further bolster economic prospects.

In the early trading hours, stocks like Hindalco, Tata Steel, JSW Steel, IndusInd Bank, and Shriram Finance emerged as significant gainers. Conversely, Adani Enterprises, Dr Reddy's Labs, Kotak Mahindra Bank, Sun Pharma, and Apollo Hospitals were notable underperformers.