Index Update: The Nifty 50 fell 1.39% on Tuesday, closing at 24,528.35, but held above key moving averages, indicating underlying strength. A breakout above a descending trendline and previous resistance supports a bullish outlook. The RSI at 60.34 reflects improving sentiment. As the index nears a critical breakout zone, short-term volatility may emerge, but the overall trend remains positive. Traders should watch for sustained momentum to confirm further upside potential.

Macro Update: India has proposed retaliatory tariffs on select U.S. products in response to U.S. tariffs on Indian steel and aluminium, affecting $7.6 billion in exports. The move, submitted to the WTO, escalates trade tensions as India seeks to address the tariff gap. This proposal coincides with ongoing trade negotiations, with India offering to reduce the tariff difference to secure a deal.

Top Market Movers: On Tuesday, Bharat Electronics Ltd (NSE: BEL) led the gainers with a 4.01% increase, closing at INR 335.75 followed by Hero MotoCorp Ltd (NSE: HEROMOTOCO) up 1.97% at INR 4,063.60, and Jio Financial Services Ltd (NSE: JIOFIN) which rose 1.71% to INR 267.40. On the downside, Infosys Ltd (NSE: INFY) saw the largest drop, falling 3.58% to INR 1,568.60, followed Power Grid Corporation of India Ltd (NSE: POWERGRID) down 3.43% to INR 298.45 and Eternal Ltd (NSE: ETERNAL), which dropped 2.38% to INR 231.65.

Commodity Update: The dollar remained firm Tuesday after the U.S. and China agreed to a 90-day tariff truce, easing trade war tensions and boosting market sentiment. The deal sparked a global relief rally, lifting stocks and commodities. Gold rose 0.20% to $3,234.50, silver jumped 0.95% to $32.93, and copper increased 0.29% to $9,511.40. However, Brent crude slipped 0.20% to $64.82 amid the improving trade outlook.

Our Stance: The market outlook remains cautiously optimistic, supported by the Nifty’s resilience above key technical levels and improving sentiment. While short-term volatility is expected, broader trends appear positive. Ongoing trade developments and global cues will be key drivers. Focus remains on selective stock opportunities and momentum-based strategies for near-term gains.

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