Index Update: The Nifty 50 gained 0.03% on Tuesday, settling at 24,333.95, staying above key moving averages and breaking through a descending trendline. Bullish candlestick patterns and an RSI of 65.05 indicate strong momentum and sustained positive sentiment. As the index approaches a key breakout zone, traders should monitor support and resistance levels closely. While the trend remains bullish, a cautious approach is recommended as the market moves toward higher territory.

Macro Update: The Indian rupee strengthened to 85 per USD, aided by a weaker dollar and strong Indian asset performance. Limited outflows, lower crude oil prices, and easing inflation (falling to 5-year lows) supported the currency. Despite slower GDP growth (6.5%), the outlook remains positive amid stable fundamentals.

Top Market Movers: On Tuesday, Bharat Electronics Ltd (NSE: BEL) led the gainers with a 3.95% increase, closing at INR 317.10 followed by Trent Ltd (NSE: TRENT) up 3.49% at INR 5,391.50, and Tech Mahindra Ltd (NSE: TECHM) which rose 2.31% to INR 1,495.30. On the downside, Coal India Ltd (NSE: COALINDIA) saw the largest drop, falling 2.03% to INR 622.00, followed UltraTech Cement Ltd (NSE: ULTRACEMCO) down 2.02% to INR 11,869.00 and Oil and Natural Gas Corporation Ltd (NSE: ONGC), which dropped 1.96% to INR 245.68.

Commodity Update: The dollar struggled to recover Tuesday as uncertainty lingered over progress in Sino-U.S. trade talks, with Treasury Secretary Scott Bessent stating China must initiate negotiations. Gold slipped 0.63% to $3,326.70, silver edged up 0.02% to $33.00, and copper dipped 0.06% to $9,392.05. Brent crude eased 0.04% to $65.63, pressured by a weak demand outlook and Russia's surprise three-day ceasefire with Ukraine, hinting at possible broader peace efforts.

Our Stance: A cautiously bullish outlook is favoured as Nifty shows strong momentum and holds above key technical levels. Positive macro indicators like a stronger rupee and easing inflation support sentiment. However, global uncertainties and rising valuations call for selective participation and close monitoring of resistance zones and geopolitical developments.

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