The Indian stock market is expected to react positively to a new trade agreement between the United States and India, which includes reduced tariffs and increased trade commitments. Here's a breakdown of today's trade setup:

Nifty 50 Outlook

• Technical Analysis: Nifty 50 has been forming higher lows, which indicates selling exhaustion and improving buyer control near key supports. The index is holding firmly above the 25,200-25,160 range, coinciding with the 200-day EMA.
• RSI: The Relative Strength Index (RSI) for Nifty 50 over a 14-day period is 49.747, suggesting a neutral stance. An RSI near 43 reflects a neutral, range-bound setup.
• Resistance and Support Levels: Immediate resistance lies at 25,450–25,500, and a decisive breakout is required to open upside toward 25,600–25,700. A sustained move above 25,600 would revive bullish momentum toward 25,900. Immediate support zones are expected at 25,000/81,500 and 24,900/81,200.
• Trading Strategy: Bias remains neutral to mildly positive, favoring dip-buying near supports within the range. If Nifty holds above 25250, it signals strength and confirms that buyers are willing to defend higher levels.

Impact of India-US Trade Deal

• Key Agreement Points: The U.S. will cut tariffs on Indian goods from 25% to 18% with immediate effect. India has committed to moving toward very low tariffs on U.S. products and has pledged over $500 billion in purchases from the U.S. over the coming years. India will phase out Russian oil and pivot toward U.S. and Venezuelan crude.
• Market Sentiment: The trade deal is expected to boost investor confidence and trigger foreign capital inflows. It may also stabilize the rupee and ease pressure on domestic interest rates.
• Sectoral Impact: Sectors likely to benefit include textiles, auto, pharma, and IT. Labor-intensive sectors such as textiles, gems and jewellery, and engineering goods are expected to receive a boost.

• Stock Recommendations: Anuj Gupta, a SEBI-registered market expert, has recommended stocks to buy from the auto, IT, pharma, textile, and defence sectors. These include:

  • Pharma: Aurobindo Pharma, Cipla, and Glenmark Pharmaceuticals.
  • Defense: BEL, HAL, and Cochin Shipyard.
  • IT: TechM, HCL Tech, Wipro, and Infosys.
  • Textile: Trident and Welspun Living.
  • Auto and Auto Ancillary: Eicher Motors, Tata Motors, TVS Motor, Bajaj Auto, JBM Auto, Bosch, Amara Raja, Exide Industries, and UNO Minda.

Gold and Silver Rates

• Current Rates: As of February 2, 2026, 24K gold is priced at ₹15,153 per gram, 22K gold at ₹13,890 per gram, and 18K gold at ₹11,365 per gram. Silver is at ₹300 per gram and ₹3,00,000 per kilogram.
• Trend: Gold prices have shown considerable volatility.
• Sovereign Gold Bonds: The Union Budget for 2026-27 proposed a change in capital gains tax rules for Sovereign Gold Bonds (SGBs). Exemptions will only apply if the bonds are subscribed to by an individual at the time of original issue and held continuously until redemption upon maturity.
• Delhi Rates (February 3, 2026): 24 Karat Gold is ₹ 14,384 per gram and 22 Karat Gold is ₹ 13,186 per gram.

Stocks to Watch

• PowerGrid, Adani Ports, BEL, Reliance, Mahindra & Mahindra, Larsen & Toubro, and IndiGo are among the top gainers.
• Axis Bank, Infosys and Tata Consultancy are among the top losers.
• Other stocks that could give 20-40% return in 1 year: Max Healthcare and Amber Enterprises.
• Shriram Finance and Engineers India are among stocks that could give 20-40% return in 1 year.

Disclaimer: The stock recommendations provided are based on market analysis and expert opinions. Investors are advised to conduct their own research before making any investment decisions.