Index Update: The Nifty 50 declined 0.70% to close at 24,826.20 on Tuesday but stayed above key moving averages, indicating underlying strength. The RSI dipped to 57.63, reflecting positive momentum within a bullish trend. A recent breakout above horizontal support confirms the prevailing upward bias. While minor pullbacks may occur, the broader technical structure remains constructive, suggesting potential for continued short-term gains amid strong market sentiment.

Macro Update: US Treasury yields fell as investors sought safety amid trade tensions and potential Japanese bond market support. This may boost India’s capital inflows, stabilize the rupee, and lower borrowing costs. Eased global rates and tariff delays could ease inflationary pressures, supporting RBI’s cautious monetary stance and improving India’s export outlook.

Top Market Movers: On Tuesday, Jio Financial Services Ltd (NSE: JIOFIN) led the gainers with a 3.43% increase, closing at INR 291.40 followed by IndusInd Bank Ltd (NSE: INDUSINDBK) up 2.57% at INR 820.70, and Trent Ltd (NSE: TRENT) which rose 0.85% to INR 5,573.00. On the downside, UltraTech Cement Ltd (NSE: ULTRACEMCO) saw the largest drop, falling 2.29% to INR 11,421.00 followed ITC Ltd (NSE: ITC) down 2.03% to INR 433.90 and JSW Steel Ltd (NSE: JSWSTEEL), which dropped 1.80% to INR 1,013.70.

Commodity Update: The dollar remained weak Tuesday amid investor worries over a major U.S. tax and spending bill that could worsen the national debt. Global stocks and the euro rose Monday while U.S. markets were closed. Focus shifts to Senate debates on Trump’s tax-cut plan. Gold fell 0.68% to $3,370.90, silver 0.28% to 33.54, and copper 0.24% to 9599.20. Brent crude dipped 0.12% to $64.62 ahead of an OPEC+ meeting.

Our Stance: Despite the Nifty’s slight dip, technical indicators show underlying strength and a bullish trend. Global easing in US Treasury yields and tariff delays support India’s macro-outlook, likely boosting capital inflows and stabilizing the rupee. We expect short-term market gains amid positive sentiment but advise monitoring geopolitical and inflation risks closely.

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