Index Update:  The Nifty 50 Index closed near 23,483.55 while remaining below its 21-day SMA near 23,785.45, reflecting a weak near-term technical structure. Recent price action indicates continued pressure following the recent consolidation phase, with the index struggling to establish a sustained recovery and remaining below key trend indicators. The 14-day RSI near 42.95 remained below the neutral mark, suggesting subdued momentum conditions and the absence of strong directional conviction. Immediate support levels are placed near 23,131.00 and 22,779.00, while resistance is seen around 23,836.00 and 24,188.00. A sustained move above the resistance zone could improve the near-term outlook, while a break below support may keep the index under pressure in the sessions ahead.

Macro Update: India’s fiscal deficit widened to INR 3.6 trillion in April 2026, nearly double the previous year, as higher oil prices increased subsidy pressures. Despite the early-year deterioration, FY2025-26 fiscal performance remained better than expected, with the deficit at INR 15.2 trillion, below revised estimates and supporting fiscal consolidation efforts.

Top Market Movers: On Tuesday, Tata Consultancy Services Limited (NSE:TCS)  led the gainers with a 6.51% increase, closing at INR 2,446.90 followed by Infosys Limited (NSE:INFY) up 5.68% at INR 1,270.80 and HCL Technologies Limited (NSE:HCLTECH) which rose 4.05% to INR 1,243.50. On the downside followed NTPC Limited (NSE:NTPC) saw the largest drop, falling 2.98% to INR 367.40 followed Axis Bank Limited (NSE:AXISBANK) down 1.94% to INR 1,251.10 and Power Grid Corporation of India Limited (NSE:POWERGRID), which dropped 1.40% to INR 282.15.

Commodity Update: The U.S. dollar remained steady on Tuesday as investors adopted a cautious stance amid ongoing Middle East peace discussions. Lebanon announced a limited ceasefire between Hezbollah and Israel, offering some relief to regional tensions, though broader geopolitical risks continued to weigh on market sentiment. Gold rose 0.26% to USD 4,518.10, silver gained 0.37% to USD 75.62, and copper advanced 0.43% to USD 13,878.90. Meanwhile, Brent crude slipped 0.40% to USD 94.58 as the Strait of Hormuz remained closed, maintaining uncertainty over global energy supply routes.

Our Stance: Market sentiment remains cautious as the Nifty 50 trades below key moving averages with momentum indicators suggesting limited buying conviction. Elevated oil prices and geopolitical uncertainties may keep volatility high. However, better-than-expected fiscal performance provides a supportive backdrop. A decisive breakout above resistance is needed to improve near-term market confidence.

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