Indian equity indices, Sensex and Nifty, are expected to start the day on a flat note, with market analysts closely examining the various significant measures announced by US President Donald Trump on his first day in office.
Siddhartha Khemka, Head of Research at Wealth Management, Motilal Oswal Financial Services Ltd, highlighted Trump’s commitment to engaging in positive discussions with China, which has bolstered global optimism. Sectors like IT, pharma, specialty chemicals, and textiles, which are export-oriented, are likely to be in the spotlight due to Trump’s trade policy decisions as he begins his tenure.
Vishnu Kant Upadhyay, AVP—Research & Advisory, Master Capital Services, noted that traders are preparing for potential volatility on Tuesday, with expectations that Trump will sign several executive orders that could impact the markets. Despite the positive sentiment, caution prevails as the market remains below its crucial 200-day EMA, signaling underlying weakness. Any initial gains are expected to face resistance in the 23,500–23,550 range.
The Nifty is expected to open flat but in positive territory at 23,421.
Rajesh Bhosale, Technical Analyst at Angel One Ltd, mentioned that the benchmark index continues to consolidate within a narrow range of 23,100–23,400, with the market awaiting triggers from both global and domestic developments. Global focus remains on the US markets and their reaction to Trump’s policies, while domestically, attention is on corporate earnings and the upcoming budget.
In other Asian markets, equities in Korea, Japan, Singapore, and Hong Kong are trading flat and lackluster, while Australian stocks are seeing marginal gains.
Overall, the sentiment remains cautious as investors continue to monitor developments in the global and domestic markets. The day is expected to be influenced by Trump’s policy decisions and ongoing market trends.