Navigating today's stock market requires a keen understanding of various influencing factors, from domestic cues to global events. For Tuesday, September 9, 2025, the trade setup for Nifty 50 is influenced by the potential impact of a US Federal Reserve rate cut, ongoing discussions surrounding the India-US trade deal, and overall market technicals.

Nifty 50 Technical Outlook

The Nifty 50 index ended the previous session with marginal gains, consolidating within a narrow range. Market analysts suggest that the short-term trend remains volatile, with a fresh uptrend rally possible only after the index crosses the 24,900 level. Above this, targets of 25,000 and 25,100 are in sight. On the downside, key support zones lie at 24,650 and 24,600.

Several experts have weighed in on potential support and resistance levels. Immediate support is placed around 24,600, while stiff resistance is expected in the 24,900 to 25,000 zone. A decisive breakout above 25,000 is deemed essential for a fresh leg of the uptrend, potentially opening the gates for a rally towards 25,300 and eventually 25,500. Immediate support lies at the recent swing low of 24,520. Overall, Nifty 50 is expected to consolidate within a broader range of 24,400 – 25,000 this week.

Impact of US Fed Rate Cut

Anticipation of a US Federal Reserve rate cut is creating a buzz in the market. A Fed rate cut typically lowers interest rates in the US, making returns on US assets less attractive to global investors. This can lead to increased capital inflow into emerging markets like India, potentially pushing stock prices higher due to rising demand for Indian stocks. Moreover, a weaker dollar resulting from the rate cut could strengthen the Indian Rupee, attracting more foreign investment. The Reserve Bank of India (RBI) may also respond by easing its monetary policy, leading to lower domestic interest rates and stimulating economic activity.

However, it's important to note that the impact of a Fed rate cut can be complex. A hawkish outlook on future rate adjustments, as seen in the past, can trigger uncertainty and potentially lead to FPI outflows from Indian equities.

India-US Trade Deal Dynamics

The ongoing discussions surrounding a trade deal between India and the US continue to be a key market driver. While a successful deal could serve as a short-term catalyst for the domestic market, delays and unresolved issues may keep the market under pressure. Key sticking points include US demands for greater access to Indian agricultural markets and tariffs on imports.

If India and the US avert reciprocal duties, the market is likely to recover significantly. A trade deal could also attract Foreign Portfolio Investors (FPIs) and encourage increased inflows into sectors like manufacturing, technology, and healthcare.

Stocks to Watch

Market experts have provided recommendations for stocks to buy or sell on Tuesday. According to Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi and Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, the following stocks may present intraday opportunities: JSW Steel Ltd, Tata Motors Ltd., Delhivery Ltd., Gravita India Ltd., Hindustan Aeronautics Ltd., CIE Automotive India Ltd., and Central Depository Services (India) Ltd (CDSL).

Past analysis has also suggested specific stocks based on technical breakouts and fundamentals. Stocks like Ashok Leyland, HDFC AMC, TVS Holdings Ltd and Lemon Tree Hotels have been identified as potential buys based on technical analysis.

Concluding Remarks

In summary, the trade setup for Nifty 50 on Tuesday, September 9, 2025, is influenced by a combination of technical factors, global economic cues, and geopolitical developments. Traders should closely monitor support and resistance levels, stay informed about the potential US Fed rate cut and the progress of the India-US trade deal, and consider stock-specific recommendations from market experts.