Indian equity markets opened on a firm note on Friday, with the Sensex rising over 250 points to reach 76,388.99, while the Nifty 50 commenced trading at 23,096.45.
The gains came despite mixed global cues and followed a weak close on Thursday, which marked the seventh consecutive session of decline.
Market analysts observed that global sentiment remained cautious after US President Donald Trump indicated that reciprocal tariffs on trade partner nations would be implemented by 2nd April 2025.
However, despite this announcement, US markets ended higher, leading investors to anticipate that most tariff issues would be resolved within the stipulated 40-day negotiation window.
Banking and market expert, Ajay Bagga commented on the trading session, stating, “Cues are positive despite President Trump signalling that after due studies and bilateral negotiations, reciprocal tariffs would be implemented on all trade partner countries by April 2nd 2025. US markets closed higher despite this announcement. Markets are factoring in that most tariff issues will be resolved over the next 40 days of negotiations and severe disruptions will not happen.”
Bagga further noted that while policy measures such as the Union Budget and the RBI’s recent rate cut had been broadly supportive, foreign portfolio investor (FPI) outflows were currently influencing short-term market movements.
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Market analysts also pointed to technical indicators suggesting key resistance and support levels for the Nifty 50. Varun Aggarwal, Managing Director of Ideaprofit, remarked, “Technically, the market's recent action indicates a lack of strength for a sustainable upside move. The short-term trend for Nifty remains positive, with 23,250 seen as a crucial resistance level.”
He added that a decisive breakout above this level could signal a near-term trend reversal, while immediate support remained at 22,800. Aggarwal further noted, “Nifty's open interest (OI) data shows the highest call OI at 23,100 and the highest put OI at 23,000, indicating resistance at the former level.”
Despite forming a gravestone doji pattern in the previous session, which often indicates market indecision, Nifty defended the 23,000 level, aligning with the 78.6% Fibonacci retracement.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remained in negative territory, signalling a downside bias.
However, momentum indicators have moved into the oversold zone, raising the prospect of a short-term rebound.
Asian markets largely traded higher on Friday, taking cues from Wall Street’s positive close, even as trade tensions persisted. The strengthening of India-US ties also remained a key focus, with plans to bolster defence cooperation and increase bilateral trade to USD 500 billion by 2030.
In early trading on the National Stock Exchange (NSE), major gainers included Hindalco, Tata Steel, JSW Steel, IndusInd Bank, and Shriram Finance.
Conversely, Adani Enterprises, Dr Reddy's Laboratories, Kotak Mahindra Bank, Sun Pharma, and Apollo Hospitals were among the leading losers.
As the session progressed, investors kept a close watch on global economic developments, policy measures, and FPI activity, all of which could shape market trends in the coming days.
Also read: Markets wobble: Sensex, Nifty down for 7th session
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