The markets are gaining ground steadily after a positive start. The Sensex and the Nifty are up smartly with over 1% gains each. What’s particularly striking is that the Nifty is rallying comfortably above the 22,300 mark. This is another key psychologically important level that it breached below during the recent correction over the past few days. The Sensex is also up over 700 points. Auto, power and tech stocks are among the top gainers in trade today.
A quick check of the sectoral indices indicate that the Nifty Auto, BSE Power and BSE Metal are amongst the top gainers. The broader markets too have been on a steady uptrend with both the BSE Midcap and the BSE Smallcap clocking in 2% plus gains supported by brisk gains.
Rohan Shah Technical Analyst, Asit C Mehta Investment Interrmediates explained that, “Indian equities staged a relief rally today after a record 10 consecutive negative closings and consecutive five months of decline. The index has multiple supports in the 21,800–22,000 zone, aligning with the 100-week EMA, an AB=CD Harmonic pattern, and a key demand zone. Additionally, breadth and momentum indicators have reached extreme oversold readings, reinforcing the rebound.
In the near-term, 21,800 remains a critical level, a breakdown below this could extend the decline towards 21,300. Conversely, if 21,800 is defended, the recovery could extend toward 22,800–23,000, which serves as the polarity resistance zone.”
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There are many reasons why the market is rallying today from optimism across Asian peers to concerns about tariff calming down-
Reciprocal tariff may have limited impact
US President Donald Trump announced reciprocal tariff ion India and China starting April 2. However, i has failed to impact investor sentiment too much for two key reasons. First and foremost. the US Commerce secretary, Howard Lutnick indicated some relief on tariffs for Mexico and Canada, during a conversation with Fox Business Network. The investors take this as a positive and expect a potential relook into other tariffs as well. Moreover, given the fact that India has a miniscule share of the global trade and the reciprocal tariff,
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