Navigating a landscape of mixed signals, the Indian stock market exhibited resilience on Monday, recovering from early losses to close in positive territory. This turnaround was largely propelled by a resurgence in key stocks across various sectors. The Nifty 50 index concluded the day at 25,790.25, marking a 0.42% increase, while the Sensex rose by 0.36% to settle at 83,878.17.
Looking ahead, market participants are expected to closely monitor developments surrounding the anticipated trade agreement between India and the United States, particularly in light of recent comments from the US Ambassador. Simultaneously, gold and silver prices are also in focus as they reach record highs.
The positive shift in market sentiment during Monday's latter half was fueled by optimistic remarks from US Ambassador Sergio Gor, hinting at a potential mending of strained relations. Gor emphasized the significance of India to the United States, stating that both nations are actively engaged in solidifying a trade agreement. These remarks are perceived as a positive gesture from the Trump administration, especially considering the recent pressure exerted on India concerning tariffs and H1B visas.
On Monday, both gold and silver prices on the Multi Commodity Exchange (MCX) soared to record highs, mirroring a global rally in bullion prices driven by safe-haven demand. This surge followed growing uncertainty surrounding a potential criminal probe into Federal Reserve Chair Jerome Powell by the Trump administration. MCX gold futures closed over 2% higher, nearing ₹1.42 lakh per 10 grams, while MCX silver prices jumped more than 6% to close slightly above ₹2.68 lakh per kg.
Ajit Mishra from Religare Broking suggests closely watching specific levels for the Nifty and Sensex. Shrikant Chouhan from Kotak Securities views 26,150/85,200 and 26,100/85,000 as key support zones for Nifty 50 and Sensex respectively. As long as the market remains above these levels, a bullish sentiment is likely to prevail. On the upside, 26,350/85,700 and 26,400/85,850 are identified as immediate resistance zones for the bulls. However, a drop below 26,100/85,000 could make the uptrend vulnerable. Given the anticipated intraday market volatility, level-based trading is recommended as the ideal strategy for day traders.
Vatsal Bhuva, Technical Analyst at LKP Securities, noted profit booking in the Bank Nifty index on Monday, leading to a bearish candlestick formation on the daily chart. However, the broader chart structure remains positive, with the index sustaining above its short-term 10-day and 20-day EMAs. As long as Bank Nifty holds above the 20-day EMA, a buy-on-dips strategy can be adopted with a positive bias. Immediate support is placed at 59,700, with resistance at 60,500, while positional support is seen near 59,300 levels.
Anuj Gupta, Director at Ya Wealth, provided insights on silver rates, noting that the COMEX silver rate is currently trading in a broader range of $72 to $78 per ounce, while the MCX silver rate is in a broader range of ₹2,42,000 to ₹2,50,000 per kg. A breakout above ₹2,50,000 could potentially lead the white metal to touch ₹2,55,000 per kg levels.
