Markets see best day in 9 months on India-US trade deal: Where does near-term support lie? Check trading levels

Stock market today news: Sensex, Nifty rally in trade.

• Sensex and Nifty surged over 2.5 percent after India-US trade deal announcement.
• US to lower reciprocal tariffs on Indian goods to 18 percent from 25 percent.
• Nifty and Bank Nifty reclaimed key moving averages, signaling bullish reversal.

Did our AI summary help?

The stock market benchmarks Sensex and Nifty logged their best single-day gains in nine months on Tuesday, rising over 2.5 percent each, after India and the US reached a trade deal under which Washington agreed to lower reciprocal tariffs on Indian goods.

After a strong opening, the Sensex surged 4,205.27 points, or 5.14 percent, to touch an intra-day high of 85,871.73. It later pared gains to close at 83,739.13, up 2,072.67 points, or 2.54 percent.

The broader Nifty jumped 639.15 points, or 2.55 percent, to settle at 25,727.55. During the session, the index climbed 1,252.80 points, or 4.99 percent, to hit a high of 26,341.20.

Markets reacted positively after US President Donald Trump said Washington would reduce the reciprocal tariff on Indian goods to 18 percent from 25 percent following a telephonic conversation with Prime Minister Narendra Modi on Monday.

With the sharp rally, investors are now assessing near-term support levels for the benchmarks.

Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, said the strong rise in the Nifty indicates a possible shift in the near-term trend after the Budget-related sell-off, as the index has moved back above key moving averages.

"However, sustaining above the 25,400–25,500 zone will be crucial. Failure to hold this range may lead to a phase of consolidation. For now, a sector- and theme-specific approach is advisable, with preference for stocks showing stronger momentum. Large-cap and select larger mid-cap stocks appear better placed for short-term trades," Mishra said.

Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC Securities, said the Nifty’s recovery of about 1,770 points from its recent swing low of 24,571 has helped it reclaim levels above the 20-, 50-, 100- and 200-day exponential moving averages.

"This confirms a bullish reversal across timeframes. Key support is seen in the 25,500–25,650 range, while resistance is placed at 25,863 and 26,373," he said.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the Nifty formed a large bearish candle on the daily chart due to rejection from higher levels.

"However, the close above key short- and long-term moving averages reflects underlying strength. The 25,600–25,550 zone will act as immediate support, while 25,850–25,880 is a key resistance area. A sustained move above 25,880 could push the index towards 26,000, followed by 26,200 in the short term," Shah said.

On the banking front, Shah said Bank Nifty hit a fresh all-time high of 61,765 before witnessing profit booking of over 1,700 points from the peak.

"Despite intraday volatility, the index closed at 60,041, up 2.43 per cent, though it formed a bearish candle on the daily chart. The 59,600–59,500 zone will act as key support, while 60,300–60,400 remains the immediate resistance. A breakout above this band could revive upward momentum," he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.