The Indian stock market has been in consolidation mode as investors continue to track progress in the India-US trade deal ahead of the approaching tariff deadline. However, despite this, Nifty breached the key resistance level of 25,350, confirming a breakout last week.
Market experts believe that as the 90-day suspension of Trump-era tariffs comes to an end, Indian markets may encounter indirect challenges due to the uncertain global trade environment.
On Friday, the Sensex and Nifty 50, rebounded breaking a two-day losing streak. The Sensex gained 193 points, or 0.23%, to settle at 83,432.89, while the Nifty 50 advanced 56 points, or 0.22%, closing at 25,461.
“The Indian market is experiencing a pause as investors adopt a wait-and-watch strategy ahead of the impending US tariff deadline, with mixed global cues. Ongoing FII outflows reflect a risk-off approach, while DII inflows are offering partial support,” Vinod Nair, Head of Research, Geojit Investments, observed.
What should be your trading strategy?
Nitin Jain, Sr. Research Analyst at Bonanza says that a wise approach is to adopt a defensive position, concentrating on domestic-focused industries such as banking and FMCG which are less affected by global fluctuations.
“Sectors that rely on exports—especially IT and specialty chemicals—might experience short-term pressure if global demand declines amid tariff uncertainties. Investors should exercise caution regarding industries associated with global supply chains, such as metals and capital goods,” Jain said.
On the technical side, the index remains on solid footing and appears well-poised to approach new all-time highs in the coming months, according to Kunal Kamble, Sr. Technical Research Analyst at Bonanza.
“That said, the rally is unlikely to be one-way; phases of consolidation and profit booking are expected as part of a healthy trend. We maintain our target of 26,500–26,600 for Nifty in 2025, with any meaningful dip presenting a buying opportunity, in line with the broader positive structure,” Kamble said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
