Index Update: The Nifty 50 rose 126.75 points to close at 25,175.40 after a gap-up start, briefly testing the day’s low before finishing in positive territory. Despite the rebound, the index remains below its 50-day Simple Moving Average near 25,910.84, which continues to act as immediate resistance. Momentum has improved, with the RSI recovering to 34.29, indicating stabilisation from lower levels. On the downside, support is placed around 25,000, while resistance is seen near 26,500. A sustained move above 26,350 would be needed to strengthen near-term confidence.

Macro Update: India is set to sharply reduce import tariffs on EU passenger vehicles to 40%, from levels as high as 110%, as part of a landmark free trade agreement with the European Union. Duties on select high-value cars will decline further to 10% over time, potentially boosting bilateral trade, improving market access for European automakers, and supporting India’s export growth amid shifting global tariff dynamics.

Top Market Movers: On Tuesday, Adani Enterprises Ltd. (NSE: ADANIENT) led the gainers with a 5.11% increase, closing at INR 1,959.50 followed by Axis Bank Ltd. (NSE: AXISBANK) up 4.59% at INR 1,315.80 and JSW Steel Ltd. (NSE: JSWSTEEL) which rose 4.44% to INR 1,222.00. On the downside followed Mahindra & Mahindra Ltd. (NSE: M&M) saw the largest drop, falling 4.23% to INR 3,393.50 followed Kotak Mahindra Bank Ltd. (NSE: KOTAKBANK) down 3.33% to INR 408.70 and Asian Paints Ltd. (NSE: ASIANPAINT), which dropped 2.99% to INR 2,622.80.

Commodity Update: The yen held firm on Tuesday after two consecutive sessions of sharp gains, keeping traders alert to the risk of coordinated currency intervention by authorities in the United States and Japan. Yen strength weighed on the dollar, which hovered near a four-month low amid concerns over a potential United States government shutdown and policy uncertainty. Gold declined 0.43% to USD 5,100.80, silver slipped 5.11% to USD 109.70, copper eased 1.56% to USD 13,037.00, while Brent crude fell 0.60% to USD 65.22.

Our Stance: Indian equities show signs of near-term stabilisation following a rebound in the Nifty 50, though technical resistance remains a constraint. Improving momentum indicators and supportive macro developments, including tariff reductions under the EU trade pact, provide constructive undertones. However, sustained upside requires confirmation through decisive technical breakouts.

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