The BSE Sensex gained 424.23 points to reach 81,736.55 at approximately 9:22 am, while the NSE Nifty50 climbed 89.80 points to 24,842.25. Broader market indicators also showed gains, demonstrating widespread optimism across Dalal Street.
Despite the strong opening, both major indices experienced some volatility and reduced their initial gains, influenced by the monthly derivatives expiry cycle.
Expert Analysis Points to Tariff Relief
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, emphasized the significance of the court ruling. “Trump’s tariff-related developments continue influencing market movements. The federal court’s rejection of reciprocal tariffs demonstrates that the former president cannot arbitrarily disrupt markets and economic stability through controversial policies. This decision marks Trump’s second major setback, following the bond market’s earlier pressure that resulted in a 90-day tariff suspension. From an investment standpoint, this represents encouraging news.”
Vijayakumar further analyzed current market positioning: “The Nifty is stabilizing within a 500-point trading band from 24,500 to 25,000. A significant movement beyond this range appears unlikely in the immediate future. Market activity remains concentrated in mid and small-cap segments, influenced by quarterly earnings announcements. Investors should exercise caution when pursuing mid and small-cap opportunities without considering proper valuations. High-quality stocks in these categories continue showing potential for superior performance.”
Technical Outlook Remains Mixed
Akshay Chinchalkar, Head of Research at Axis Securities, provided technical perspective: “The Nifty experienced declines for two straight sessions, yet India VIX simultaneously decreased, suggesting minimal appetite for downside hedging. This pattern is atypical during genuine bearish phases. The key support threshold remains at 24,462, which will determine whether this pullback represents temporary weakness or initiates a more substantial correction. Currently trading above this level maintains our positive outlook. US markets declined yesterday, but Nvidia’s impressive earnings have lifted US futures, adding to today’s optimism. Resistance levels exist at 25,116 and 25,390, with support zones around 24,600 to 24,700.”
Anand James, Chief Market Strategist at Geojit Investments, highlighted divergent market signals: “The Nifty finished near session lows, creating potential for retesting the 24,500 threshold as previously anticipated. While 70% of Nifty constituents closed near daily lows, only 37% of midcap 150 stocks exhibited comparable weakness, revealing some disparity in broader market performance ahead of derivatives settlement.”
James provided forward guidance: “Considering the conflicting indicators, we anticipate measured optimism with upside objectives around 25,026 to 25,077. However, inability to surpass 24,811 might indicate weakening momentum, though we would require an hourly close below 24,755 before expecting downward movement toward the 24,500–24,060 zone.”