On a Tuesday that began in doubt, Indian equity markets found their footing and climbed back toward confidence, with the Nifty 50 and Sensex reversing early losses to close meaningfully higher. The recovery was not merely technical — it arrived alongside a landmark trade agreement between India and the European Union, one that opens preferential access to nearly all Indian exports across a market representing a quarter of global GDP. Amid record highs in gold and silver and a strengthening rupee, the day offered a reminder that markets are rarely moved by a single force, but by the convergence
Indian markets rally on EU trade deal; 8 stocks to buy as Nifty eyes 25,200
The market found support and bounced back sharply from the day's low.
Mark
So the market bounced back Tuesday after starting weak. What actually changed during the day?
Mimi
The Nifty found support near 24,900 and then rallied sharply—over 300 points from the low. The technical pattern that formed, a long bullish candlestick, suggested buyers stepped in decisively when prices fell.
Luke
But we should be clear: one good day doesn't confirm a trend. The analysts are saying the market needs to hold above 24,900 to keep the pullback going. Below that, sentiment flips.
Mark
What about this EU trade deal? Is that what drove the bounce?
Mimi
It likely helped. The agreement covers 99% of Indian exports with zero or reduced duties on textiles, pharma, chemicals—sectors that employ a lot of people. It signals India is integrating into global supply chains in a rules-based way.
Luke
True, but the deal also opens India's market to EU goods on 96.6% of their exports. That means more competition for domestic sectors. The source says it will lower input costs and support efficiency, but we don't yet have the full official documents from India's Ministry of Commerce and Industry, so the sectoral impacts are still somewhat unclear.
Mark
What about the rupee and commodities? Those seemed to move significantly.
Mimi
The rupee strengthened to 91.70 on trade optimism and short covering. Gold and silver hit all-time highs—gold at ₹1,59,820 per 10 grams on MCX, silver at ₹3,64,821 per kilogram. That's driven by a weak dollar and Fed uncertainty.
Luke
Silver is up 50% in January alone, 170% in 2025. That's extraordinary volatility. The source attributes it to tight physical supplies and Shanghai premiums, but that's a lot of movement to hang on supply tightness alone. There's clearly speculative positioning in there too.
Mark
And the eight stocks the experts recommended—are those solid picks?
Mimi
They're technical recommendations based on chart patterns, moving averages, and support-resistance levels. Axis Bank, ICICI Bank, NTPC, and the others all show bullish formations and are trading above key moving averages.
Luke
But here's the thing: these are intraday recommendations from three different analysts. They're not fundamental calls. They're saying the charts look good right now. That's useful information, but it's not the same as saying these companies are good businesses. And the source includes a disclaimer that these are educational views, not investment advice.
Le Pouls
- Indian indices fell as low as 24,900 on the Nifty intraday before buyers stepped in decisively, staging a 300-point reversal that left technical analysts cautiously optimistic about the days ahead.
- The India-EU free trade agreement, finalized January 27 and covering over 99% of Indian exports by value, injected a wave of structural optimism into markets, signaling deeper global integration for Indian industry.
- Silver on MCX surged to an all-time high of ₹3,64,821 per kilogram — up 50% in January alone — while COMEX gold held above $5,125 per ounce, both driven by dollar weakness and uncertainty over US Federal Reserve leadership.
- The rupee strengthened to 91.70 against the dollar as trade optimism and short covering improved capital flow expectations, though the Fed's Wednesday policy decision keeps the currency on a watchful footing.
- Eight stocks — including Axis Bank, ICICI Bank, NTPC, and Waaree Energies — were identified by analysts as intraday buy opportunities, each supported by bullish chart formations and defined risk parameters.
On a Tuesday that began in doubt, Indian equity markets found their footing and climbed back toward confidence, with the Nifty 50 and Sensex reversing early losses to close meaningfully higher. The recovery was not merely technical — it arrived alongside a landmark trade agreement between India and the European Union, one that opens preferential access to nearly all Indian exports across a market representing a quarter of global GDP. Amid record highs in gold and silver and a strengthening rupee, the day offered a reminder that markets are rarely moved by a single force, but by the convergence of policy, sentiment, and the quiet arithmetic of supply and demand.
The Indian stock market began Tuesday on uncertain ground, with the Nifty 50 sliding as low as 24,900 in the morning session before staging a sharp recovery. By the close, the Nifty had gained 127 points and the Sensex 320, a reversal that technical analysts read as a sign of decisive buyer participation. Metals led sectoral gains with a 3.35% jump, while media stocks declined over 1%. On the daily charts, the Nifty formed a long bullish candlestick — a pattern suggesting that sellers were absorbed and buyers regained control.
Kotak Securities' Shrikant Chouhan mapped the terrain ahead: support holds near 24,900 on the Nifty and 81,000 on the Sensex, with the next meaningful resistance at 25,200 and 81,800 respectively. A sustained break above those levels could extend the rally toward 25,300–25,350. A breach below support, however, could trigger a swift reversal in sentiment. The Bank Nifty, which also closed with a bullish candlestick, faces its own pivot around the 20-day moving average, with support at 58,800 and resistance at 59,500.
Much of the day's optimism was anchored in a trade agreement concluded between India and the European Union on January 27. The deal offers Indian exporters preferential tariff access — zero or reduced duties — covering more than 99% of Indian exports by value, spanning textiles, pharmaceuticals, chemicals, and industrial goods. In return, India opens its market to roughly 96.6% of EU exports, a reciprocal arrangement that should lower input costs for domestic manufacturers while increasing competition in some sectors. Sensitive agricultural goods retain protections. Analysts noted the deal signals India's commitment to rules-based global integration and could attract higher foreign direct investment.
Commodity markets told a story of record-breaking momentum. Silver on MCX hit an all-time high of ₹3,64,821 per kilogram, up 50% in January alone, driven by tight physical supply and elevated Shanghai premiums. Gold held near record highs, with MCX gold reaching ₹1,59,820 per 10 grams, supported by a weaker dollar and uncertainty surrounding US Federal Reserve leadership. The rupee strengthened to 91.70 against the dollar, buoyed by trade optimism and afternoon short covering, though analysts expect it to track global cues closely ahead of the Fed's Wednesday decision.
For traders looking ahead, eight stocks were flagged as intraday buy candidates: Axis Bank, APL Apollo, ICICI Bank, NTPC, Bharat Dynamics, Waaree Energies, IRCON International, and MTAR Technologies — each supported by bullish technical formations, defined entry points, and clear stop-loss levels, offering structured opportunity within a market still navigating its own recovery.
The Indian stock market shook off an uncertain start on Tuesday, clawing back from an early dip to finish the day in positive territory. The Nifty 50 closed 127 points higher while the Sensex gained 320 points, a recovery that felt meaningful after the market had dropped as low as 24,900 on the Nifty during the morning session. From that low point, the indices rallied more than 300 points, a sharp reversal that left technical analysts reading the charts with cautious optimism. The metal sector led the way, jumping 3.35%, while media stocks bore the brunt of selling pressure, declining over 1%. On the daily charts, the Nifty formed a long bullish candlestick—the kind of pattern that suggests buyers stepped in decisively when prices fell—and intraday charts showed what analysts called a promising reversal formation.
Shrikant Chouhan, head of equity research at Kotak Securities, outlined the immediate terrain ahead. The market has found support near 24,900 on the Nifty and 81,000 on the Sensex, and as long as it holds above those levels, a pullback formation should continue. The next hurdle sits at 25,200 on the Nifty and 81,800 on the Sensex. A decisive break above that resistance could propel the market toward 25,300-25,350 and 82,200-82,400 respectively. But the downside risk is real: if the market falls below the 24,900 support level, sentiment could shift sharply and traders may rush to exit long positions. For the Bank Nifty index, which closed with its own bullish candlestick, support is placed at 58,800 and resistance at 59,500, with the 20-day moving average emerging as a crucial pivot point.
Much of Tuesday's optimism stemmed from a trade agreement finalized on January 27 between India and the European Union. The deal grants Indian exporters preferential tariff access to the EU market, covering more than 99% of Indian exports by value, with zero or reduced duties on labor-intensive sectors including textiles, footwear, fisheries, chemicals, pharmaceuticals, and industrial goods. For India, the agreement opens doors to roughly 2 billion consumers and represents about 25% of global GDP. The reciprocal nature of the deal means India is also opening its market to EU goods—tariff elimination or reduction on approximately 96.6% of EU exports—which will increase competition in some domestic sectors but should lower input costs for Indian manufacturers and support technology upgrades. Sensitive agricultural products like rice, sugar, and poultry retain protections. Pranay Aggarwal, director and CEO of Stoxkart, noted that the agreement signals India's commitment to rules-based integration and resilient supply chains, a message that could attract higher foreign direct investment and reinforce economic openness amid geopolitical uncertainty.
Commodity markets painted a picture of volatility and record-breaking moves. Silver prices on COMEX spiked above $117 per ounce on Monday before retreating to around $108, but on India's MCX exchange, silver surged to an all-time high of ₹3,64,821 per kilogram, driven by tight physical supplies and elevated Shanghai premiums. The metal is up 50% so far in January alone, following gains of roughly 170% in 2025. Gold, meanwhile, held firm near record highs, with COMEX gold trading above $5,125 per ounce after touching an all-time peak of $5,145.39. On the domestic front, MCX gold hit a fresh record of ₹1,59,820 per 10 grams, supported by a weaker US dollar, tariff-related risks, and uncertainty around US Federal Reserve leadership—all factors that typically drive investors toward safe-haven assets.
The Indian rupee strengthened to 91.70 against the US dollar, gaining around 0.16 paise, as optimism around the EU trade agreement bolstered sentiment. Short covering in the afternoon session further lifted expectations of steadier capital flows. With the Federal Reserve's policy decision due late Wednesday, the rupee is likely to track global cues closely, with analysts expecting the currency to trade in a near-term range between 91.35 and 92.15.
Stock market experts identified eight names as potential buys for intraday traders on Wednesday. Axis Bank, trading at ₹1316, was recommended as a buy with a target of ₹1408 and a stop loss at ₹1270, with the stock having recently reached a 52-week high of ₹1333.2 and showing consistently higher highs and lows. APL Apollo, at ₹2061, was flagged with a target of ₹2203 and stop loss of ₹1990, having broken out from a consolidation range after forming a rounding base. ICICI Bank at ₹1360 was recommended with a target of ₹1395 and stop loss of ₹1345, exhibiting sustained bullish momentum. NTPC at ₹344 was suggested with a target of ₹360 and stop loss of ₹335, maintaining strong support at ₹335. Bharat Dynamics Ltd, priced at ₹1469, was recommended with a target of ₹1525 and stop loss of ₹1430. Waaree Energies at ₹2695 was flagged with a target of ₹2820 and stop loss of ₹2640, having consolidated near ₹2550-2600 before showing signs of revival with strong volume. IRCON International at ₹154.90 was recommended with a target of ₹163 and stop loss of ₹151, having stabilized after a recent correction from ₹182. Finally, MTAR Technologies at ₹2528 was suggested with a target of ₹2650 and stop loss of ₹2470, showing a series of higher bottom formations and taking support near its 50-day exponential moving average.
Citations marquantes
As long as the market trades above 24,900/81,000, a pullback formation is likely to continue. A successful breakout of 25,200/81,800 could push the market up to 25,300-25,350/82,200-82,400.— Shrikant Chouhan, Head Equity Research, Kotak Securities
The reciprocal framework, business-friendly rules of origin, customs facilitation, and the deal's scale covering approximately 2 billion people and 25% of global GDP are expected to boost global investor confidence and attract higher FDI inflows.— Pranay Aggarwal, Director and CEO, Stoxkart
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