Sensex, Nifty to open higher as U.S. tariffs paused; Dr Agarwals Health Care IPO listing eyed

Indian share market is set to open higher on Tuesday, tracking positive cues from Asian peers, which rose up to 3% after the U.S. government decided to pause tariffs on Maxico and Canada for a month and likely talks between Beijing and Washington, D.C. to avoid trade disruptions. The positive cues from Gift Nifty also indicate a gap-up start for Sensex and Nifty, with Gift Nifty futures trading 25.5 points, or 0.11%, higher at 23,544.5 mark.

However, persistent concerns over Trump tariffs along with domestic events such as Reserve Bank of India (RBI) policy outcome and Delhi state elections will keep investors on edge. The market is expected to move within a defined range as traders are likely to wait for clarity from these events.

Among individual stocks, investors will keep an eye on listing of Dr Agarwal Health Care shares on stock exchanges after it received decent response for its IPO. Traders will be also awaiting earnings reports from big companies like Titan, Tata Power, and Torrent Power, while they will react to results of Power Grid, HFCL, Tata Chemicals, and Garden Reach Shipbuilders, which came post market hours yesterday.

U.S. stocks end off lows after Trump delays Mexico, Canada tariff

U.S. stocks extended losing streak on Monday as investors weighed down the Trump administration's scheduled tariff rollout against Canada and China. The market erased early losses after President Donald Trump agreed to delay Mexico’s tariffs for a month. The tariffs, which were slated to be effective from Tuesday, include 25% duties on Canada and Mexico, and 10% on China. Post market hours, Canadian Prime Minister Justin Trudeau tweeted that Trump has agreed to delay Canada's tariffs for at least 30 days. At the close, the broad S&P 500 index was down 0.76%, the Dow Jones Industrial Average lost 0.28%, and the tech-heavy Nasdaq settled 1.2% lower.

Asian stocks open higher

Markets in Asia Pacific region opened higher on Tuesday, after heavy sell-off in the previous session, as sentiments were lifted amid news that the U.S. government has decided to pause tariffs on Maxico and Canada for a month. However, lingering concerns about 10% tariff on goods from China, starting Tuesday, kept investors on edge amid report that Beijing was open to talks to avoid trade disruptions. At the time of reporting, Japan’s Nikkei 225 was trading 1.6% higher, Hong Kong’s Hang Seng was up 3%, and South Korea’s KOSPI climbed 1.75. Australia’s ASX 200 ended 05% higher.

Indian equities fall amid Trump’s tariff move

The domestic stock market ended lower on Monday as investor sentiments were dampened by increased global uncertainties after U.S. government announced to rollout tariff against Maxico, Canada and China, effective from Tuesday. The BSE Sensex closed 319.22 points, or 0.41%, lower at 77,186.74, and the NSE Nifty50 shed 121.10 points, or 0.52%, to settle at 23,361.05. In the broader market, the Nifty Smallcap100 index plunged 2.13%, while the Nifty Midcap 100 index closed lower by 0.93%. Among the Nifty50 constituents, 35 stocks closed in negative terrain, led by Larsen and Toubro, Tata Consumer, Hero MotoCorp, Coal India, and Bharat Electronics, falling up to 4.7%. On the other hand, Bajaj Finance, Shriram Finance, Mahindra & Mahindra, Wipro, and Bajaj Finserv were among notable gainers.

Technical outlook

Technically, despite of high volatility, Nifty defended its 21-days simple moving average (21-DSMA) support on Monday and formed a hammer candle on a daily scale, indicating strength. “The 21-DSMA is placed near 23,270 levels, which will act as immediate support for index followed by 23,000 levels, while 23,640 will serve as short-term resistance for index. As long as the index holds 23,000, traders are advised to follow a buy-on-dips strategy,” says Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

"The Nifty remained volatile before closing on a negative note. On the daily chart, the index managed to close above the critical 21EMA; however, sentiment appears fragile, and support may be broken in the near term. On the lower end, support is placed at 23,200/23,100, while on the higher end, resistance is placed at 23,400,” says Rupak De, Senior Technical Analyst at LKP Securities.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)