Nifty 50 Index Inches Up As Traders Weigh US-India Trade Deal Prospects

Nifty 50 Index (INDEXNSE: NIFTY_50) is marginally up in early afternoon trading on Thursday adding 50 points to rise to 25,503 points. The gains were driven by a mix of geopolitical optimism, domestic institutional support and sector rotation. As the July 9 deadline for US trade deals draw near, investors are growing optimistic that negotiations between the world’s largest and fifth-largest economies have yielded good fruit. Delegations from both nations have in recent days describes the deal as “very close”, signaling a near-term resolution.

Notably, export-heavy stocks led the Nifty 50 Index today, with IT and auto stocks such as Infosys, Tata Motors, M&M and Reliance Industries edging up. Automakers rallied, propelled by optimism that lower tariffs could reduce input costs and expand market opportunities abroad. Meanwhile, IT stocks are boosted by hope that a US-India trade deal could come up with clearer trade terms and lift fears over service exports.

Meanwhile, the Nifty 50 Index flows also had significant input from Domestic Institutional Investors (DII). As of this writing, inflows from DII were at about ₹3,000 crore on the day, helping offset the outflows from Foreign Institutional Investors (FII) who had sold about ₹1,500 worth of stock. On the technical front, the Nifty 50 Index is still hovering around a bullish consolidation zone and the upside potential will likely remain steady as long as it holds above 25,400 points.

Nifty 50 Index Prediction

The momentum on Nifty 50 Index faviurs the upside to prevail above 25,510. That will likely see primary resistance encountered at 25,590. However, a stronger momentum will breach that barrier and could potentially push the action higher to test 25,660.

Conversely, breaking below 25,510 will shift the momentum to the downside. With the sellers in control, the Index will likely find initial support at 25,435. Breaking below that level will invalidate the upside narrative. Furthermore, an extended control by the sellers could send the action lower to test 25,370.

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