Indian markets set for another 'gap-up' opening on Tue amid global gains

Buoyant global mkts could propel domestic equities for 2nd trading session in a row

Domestic markets are set for a “gap up” opening for a second consecutive trading session on Tuesday, underpinned by strong gains in global equities. Most European and Asian benchmarks rose on Monday amid favourable shifts in US President Donald Trump’s approach to trade policy. Trump signalled a carve-out of trade levies on some consumer electronics, fuelling speculation that they might avoid the worst of the tariff hit. The US President, however, later downplayed the weekend exemption as a procedural step in his push to change global trade.

 

Stocks in Japan rose about a per cent while Hong Kong markets gained close to 2 per cent even as the benchmark gauges in mainland China rose less than a per cent. The Stoxx Europe 600 rose as much as 2 per cent in early trading.

 

 

Experts said benchmarks Sensex and the Nifty could open more than a per cent higher, extending Friday’s near 2 per cent rally. Indian equity benchmarks surged on Friday after Trump unexpectedly rolled back certain tariff measures earlier in the week.

 

The Sensex had last closed at 75,157 while the Nifty 50 index ended at 22,829. The markets were shut on Monday for a holiday. However, gains were tempered by lingering concerns over escalating trade tensions between the US and China.

 

Last week, Trump announced a three-month pause on additional tariffs for nations engaging in trade negotiations while maintaining a 10 per cent baseline import duty.

 

Gold will also be in focus as uncertainty about US tariffs has made investors seek refuge in the yellow metal. Gold had hit a record on Monday at $3,246 per ounce before losing some gains and was trading at $3,214. On a year-to-date (YTD) basis, gold has gained 23 per cent.

 

Last week, the market saw heightened turbulence, driven by uncertainty over the global economic effects of tariffs.

 

The Nifty 50 index swung nearly 1,200 points, or 5.5 per cent, dropping to a low of 21,744, rising to 22,924, and closing at 22,829.

 

With only three trading days this week, volatility is seen ebbing, unless global news flow once again turns adverse.

 

“In the near term, we expect the 22,600-22,700 range to act as support for the Nifty while 23,000-23,100 could serve as immediate resistance,” said Nandish Shah, senior derivatives and technical research analyst at HDFC Securities.

 

A report from Bajaj Broking Research said, “We expect the index to trade within a 22,250-23,050 range during this shortened week. A sustained break above 23,050 could take the index to 23,550, last week’s high, while key support lies between 21,700 and 22,000, in line with the sharp decline seen on last Monday (April 7).”