Market’s Positive Shift
The Indian stock market witnessed a noticeable upswing, with the Bank Nifty index bouncing back strongly from its intraday low. This upward trend was fueled
by the favorable comments from US Ambassador Sergio Gor. These remarks focused on the ongoing India-US trade deal negotiations and the importance of India as a trade partner. Sunny Agrawal, Head of Fundamental Equity Research at SBICAPS Securities, highlighted that the optimism surrounding the trade talks was a significant factor in the short covering during the day. This positive development suggested a shift in market sentiment. The 20-day Simple Moving Average (SMA) is at 59,500, a key level, according to Shrikant Chouhan of Kotak Securities. The market's reaction also followed a technical view suggesting the index has now crossed its trend-deciding level, as stated by Axis Direct.
Ambassador’s Remarks Impact
US Ambassador to India, Sergio Gor, played a pivotal role in boosting market confidence with his positive assessment of the trade relations. Gor conveyed President Trump’s best wishes to Prime Minister Narendra Modi. He described the relationship between the two leaders as genuine. Gor highlighted strategic initiatives such as Pax Silica, with India as a key partner. He emphasized the active engagement from both sides, even acknowledging the challenges in reaching a conclusion. The ambassador’s words, particularly his assertion that there is "no partner more essential than India," resonated positively with investors. Senator Marco Rubio's comment that this year will be a year of reciprocity further strengthened the market sentiment. He also said that the next round of discussions on the long-awaited trade deal will take place tomorrow, and that President Trump will be visiting India in the next one to two years hopefully.
Banking Sector Performance
The banking sector showed mixed reactions to the market’s recovery. IndusInd Bank led the gainers, experiencing a surge of over 2 percent, while ICICI Bank followed with a gain of over 1 percent. Other prominent banks, including State Bank of India, AU Small Finance Bank, Yes Bank, and Union Bank of India, also saw an increase of nearly 1 percent each. Conversely, several banks faced downward pressure. These included Punjab National Bank, Axis Bank, Bank of Baroda, Canara Bank, IDFC First Bank, and Federal Bank, which slipped by up to 1 percent, contrasting with the general upward trend. Kotak Mahindra Bank and HDFC Bank also traded in the green with marginal gains.
Expert Insights and Levels
Various analysts provided insights into potential market movements and key levels to watch. Shrikant Chouhan from Kotak Securities pointed out the importance of the 20-day SMA at 59,500. He suggested that if the index stayed below this level, the correction could extend to the 58,800–58,500 range. However, a move above 59,500 could lead to a rebound towards 59,800–60,000. Choice Broking identified immediate support near 59,000, warning of a potential drop to 58,900–58,800 if this level was breached. They also indicated strong resistance at 59,500–59,600, suggesting that a decisive breakout would be necessary to revive bullish sentiment. Axis Direct also highlighted the significance of 59,382 as the trend-deciding level.
