Nifty forms a Bullish Hammer Candle—How to trade on Tuesday?

On Monday, Sensex and Nifty felt the heat from weak Asian market cues and escalating trade tensions. US President Donald Trump's new tariffs on Canada, Mexico, and China rattled global markets, triggering widespread selling. Major sectors like banks, energy, and FMCG struggled, though IT stocks managed to show some resilience.

The S&P BSE Sensex closed slightly lower, dipping 319.22 points or 0.41% to 77,186.74. Meanwhile, the Nifty slid 31.75 points or 0.52% to settle at 23,361.05.

Technical Insight:

Nifty took support at the middle of the Bollinger Band after a steep intraday drop, closing with a bullish hammer candle—an optimistic signal. Dr. Praveen Dwarakanath, VP of Hedged.in, notes that momentum indicators on the hourly chart are showing a recovery, suggesting positive sentiment may continue. The next resistance is seen at 23,800. Options data hints at a range-bound market, with strong put writing at 23,300 and call writing at 23,500.

Global Market Impact:

Nasdaq plunged 400 points at the open, S&P dropped over 1% as fears of a global trade war spooked investors.

OPEC+ decided to exclude US Energy Information Administration data from its monitoring—an interesting move that could affect oil market dynamics.

Solarium Green Energy's IPO is set to open on Thursday, aiming to raise Rs 105.04 crore through fresh equity.

GRSE reported a solid 11% YoY growth in Q3 net profit at Rs 98 crore.

Gold Soars:

Amid the market turbulence, gold prices shot up Rs 400 to a new record of Rs 85,300 per 10 grams, driven by a weak rupee and strong international trends.

Trading Strategy for Tuesday:

Look for buying opportunities near the 23,300 support level with a target of 23,800.

Watch for market reactions to any further trade policy updates—volatility could present short-term trading opportunities!