Index Update: The Nifty 50 slipped 74.70 points to finish at 25,884.80, but its broader bullish trend remains intact. The index is still trading comfortably above the 51-day SMA at 25,489.55, highlighting firm underlying support. The RSI at 54.40 signals steady momentum within the neutral-to-positive range. Immediate support is near 25,500, while resistance is positioned around 26,300. A sustained move above 26,150 may rekindle upward momentum and strengthen near-term sentiment.

Macro Update: India’s 10-year bond yield stayed near 6.5%, hovering around seven-month highs as markets weighed the government’s upcoming reform agenda. Focus shifts to Q3 GDP, expected at 7.3%. Growth signals softened amid record trade deficits, weaker manufacturing and services activity, and pressure from US tariffs, tempering broader economic sentiment.

Top Market Movers: On Tuesday, Hindalco Industries Ltd (NSE: HINDALCO) led the gainers with a 1.90% increase, closing at INR 789.35 followed by Bharat Electronics Ltd (NSE: BEL) up 1.60% at INR 410.25 and State Bank of India (NSE: SBIN) which rose 1.34% to INR 983.60. On the downside Adani Enterprises Ltd (NSE: ADANIENT) saw the largest drop, falling 2.76% to INR 2,332.90 followed Tata Motors Passenger Vhcls Ltd (NSE: TMPV) down 1.63% to INR 352.45 and Trent Ltd (NSE: TRENT), which dropped 1.55% to INR 4,243.90.

Commodity Update: The U.S. dollar held steady on Tuesday as markets weighed the likelihood of a Fed rate cut next month following dovish remarks from policymakers. The yen stayed fragile, keeping intervention risks elevated. In commodities, gold rose 0.33% to USD 4,183.40, silver added 0.31% to USD 51.30, and copper climbed 1.17% to USD 10,880.75. Brent crude slipped 0.30% to USD 63.20 as supply concerns overshadowed geopolitical uncertainties.

Our Stance: Market sentiment remains cautiously constructive as Nifty sustains above key moving averages, supported by steady momentum readings. However, macro signals indicate emerging pressure from weaker trade data and softening activity. Sector rotation is likely to continue, favouring defensives and select financials, while global cues and bond yields remain critical near-term drivers.

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