Index Update: The Nifty 50 Index slipped 45.45 points to 24,579.60, as selling pressure dampened sentiment and reinforced short-term weakness. Technically, the index trades below its 21-SMA, now acting as dynamic resistance, limiting rebound potential. A sustained move above the 50-SMA is needed to signal recovery. On the downside, key support lies at 24,350.70, aligned with a falling trendline, and holding this level remains crucial to prevent deeper losses.

Macro Update: India’s macro-outlook brightened as Q1 FY26 current account deficit narrowed to $2.5 billion, the lowest since 2021, supported by strong services and remittance inflows despite a wider goods gap. Meanwhile, the government is considering GST cuts on 175 products, including hybrids and electronics, to spur consumption.

Top Market Movers: On Tuesday, Power Grid Corporation of India Ltd (NSE: POWERGRID) led the gainers with a 2.45% increase, closing at INR 286.70 followed by Tata Consumer Products Ltd (NSE: TATACONSUM) up 2.33% at INR 1,100.80, and Nestle India Ltd (NSE: NESTLEIND) which rose 2.26% to INR 1,200.90. On the downside, Mahindra and Mahindra Ltd (NSE: M&M) saw the largest drop, falling 2.44% to INR 3,234.50 followed Dr Reddy's Laboratories Ltd (NSE: DRREDDY) down 2.05% to INR 1,253.70 and Kotak Mahindra Bank Ltd (NSE: KOTAKBANK), which dropped 1.33% to INR 1,942.50.

Commodity Update: The dollar weakened as traders reacted to President Trump’s escalating attacks on the Federal Reserve, including the dismissal of Governor Lisa Cook, stoking fears of eroded central bank independence. Gold up 0.56% at $3,565.65 and silver surging 2.44% to $41.715, while copper rose 0.36% to $9,927.15. Brent crude gained 0.45% to $68.46, with oil steady as markets balanced OPEC+ output growth against Russia-Ukraine supply risks.

Our Stance: The market outlook remains cautious as Nifty trades below key moving averages, restricting upside momentum. While a narrower current account deficit and potential GST cuts provide supportive macro tailwinds, global uncertainties, policy risks, and persistent selling pressure continue to weigh on sentiment, keeping downside risks firmly in focus.

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