Nifty Trade Setup: Positive Momentum Likely to Continue
The Nifty could climb toward the 26,000 and 26,350 levels in the next few sessions. Indian stock markets saw a massive rally on Tuesday following the news of a trade deal between India and the US. Experts believe this positive trend will continue, even with some market swings caused by global uncertainty.
Nifty Key Support and Resistance Levels
According to Bajaj Broking Research, the index opened with a large gap up but saw some profit-booking at higher levels. However, the outlook remains positive as long as the Nifty stays above the immediate support zone of 25,450.
- Support Levels: Key short-term support is between 25,100 and 24,800.
- Upside Targets: If the momentum holds, the Nifty could reach 26,000 and 26,350 soon.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that the end of trade deal uncertainty brings several benefits. He expects foreign investors to return, the Rupee to strengthen, and general market sentiment to improve. Growth in the near term will likely be driven by recent trade deals with the US and EU, the Union Budget, and current Q3 earnings reports.
Bank Nifty Outlook
The upcoming RBI monetary policy announcement is expected to keep the banking index volatile. Analysts at Bajaj Broking Research suggest that global cues will also contribute to these price swings.
The firm stated that as long as the Bank Nifty stays above its support zone, the trend remains positive. This could push the index toward the 60,800 and 61,700 levels in the coming days.
Market Recap: A Record-Breaking Session
The Nifty 50 finished the day strong, rising more than 2.5% to close above 25,700. This was its best daily performance since May 2025. Meanwhile, the Sensex jumped 2.54% to end at 83,739.13.
Mid-cap and small-cap stocks did even better, both gaining nearly 3%. This shows that investors are buying across the entire market. Most sectors ended the day in the green:
- Realty: Led the market with a 4.8% gain.
- Top Performers: Infrastructure, energy, pharma, and banking saw strong growth.
- Laggards: The FMCG sector saw modest gains, while IT stocks trailed behind other industries.
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