Indian stock market benchmark indices Sensex and Nifty 50 are expected to open flat on Tuesday, following weak global market cues as US President Trump's tariff announcement on eight European countries over Greenland dampened investor sentiment worldwide.

Monday's Market Performance

The Indian stock market ended lower on Monday as global trade tensions escalated. Market performance showed broad-based decline across key indices.

"Going ahead, markets are expected to trade sideways, tracking global cues and ongoing earnings, while any escalation on the geopolitical front would remain a key overhang," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Global Market Developments

Asian Markets Performance

Asian markets traded lower on Tuesday as Trump's tariff threats over Greenland stoked concerns of revived trade tensions and weighed on investors' risk appetite.

Gift Nifty Indication

Gift Nifty was trading around 25,608 level, showing a premium of nearly 12 points from the Nifty futures' previous close, indicating a flat start for Indian stock market indices.

International Economic Updates

China's Lending Rates

China maintained its benchmark lending rates unchanged for an eighth consecutive month in January. The monetary policy stance remained steady with key rates holding at previous levels.

European Equity Outlook

Citi downgraded continental Europe to "neutral" for the first time in over a year, citing the latest step-up in transatlantic tensions and tariff uncertainty that dented the near-term investment case for European equities.

Commodity and Currency Markets

Precious Metals Surge

Gold and silver prices surged amid US-Europe trade tensions, with both metals approaching record territory.

US Dollar Weakness

The US dollar retreated to its lowest level in a week as trade tensions affected currency markets. The dollar index, measuring the greenback's strength against six major currencies, declined to 99.004 - its lowest level since January 14.

Markets remain focused on global trade developments and their potential impact on investor sentiment, with ongoing earnings season providing additional direction for Indian equities.

Indian equity markets exhibited cautious trading patterns on Monday as global uncertainties dominated investor sentiment. Fresh tariff threats from US President Donald Trump targeting select European countries triggered widespread risk-off sentiment across global markets, impacting domestic trading dynamics. Persistent foreign investor selling pressure, combined with continued rupee weakness against the dollar, maintained defensive positioning among market participants throughout the session.

Nifty 50 and Sensex Trading Outlook

Shrikant Chouhan, Head Equity Research at Kotak Securities, outlined specific trading levels for Tuesday's session. The current market texture remains weak, with potential for fresh selling pressure if key support levels are breached.

Chouhan emphasized that the intraday market remains volatile and non-directional, making level-based trading the ideal strategy for day traders.

Bank Nifty Technical Analysis

Vatsal Bhuva, Technical Analyst at LKP Securities, provided detailed insights on Bank Nifty's technical positioning. The index demonstrated strong support near its 20-day Simple Moving Average (SMA) on Monday, with buying interest emerging at lower levels.

The index currently consolidates with a bullish undertone, sustaining above its key short-term 20-day SMA. The Relative Strength Index (RSI) has moved into a bullish crossover, supporting the positive bias. However, fresh momentum requires the index to close above 60,000 and sustain that level for 2-3 sessions. Near-term support is placed at 59,500, while resistance stands at 60,400.

Precious Metals Rally

Silver Market Performance

Silver demonstrated exceptional strength in early Asian trading, with COMEX silver rates climbing to a new peak of $94.74 per ounce. At 6:30 AM, COMEX silver was trading at $93.75 per ounce, representing a significant 5.90% gain from Monday's close.

Ponmudi R, CEO at Enrich Money, noted that MCX silver rates have decisively broken above ₹3,05,000 levels, positioning the white metal to potentially touch ₹3,15,000 per kg. On the downside, dips below ₹2,90,000 may test ₹2,85,000, where strong buying interest is likely to emerge.

Gold Price Movement

Gold prices opened with an upside gap in Asian markets, extending early morning gains. At 6:30 AM, COMEX gold was trading at $4,673.75 per ounce, up approximately 1.70% from Monday's close.

Ponmudi R highlighted that MCX Gold maintains a clean higher-high, higher-low structure within a rising channel, with strong domestic participation backed by global strength and stable USD/INR near 90.70.

Currency Market Analysis

The Indian rupee continued its decline, slipping to 90.91, down 14 paise, as early equity market panic followed fresh US tariff moves on the European Union. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that concerns over delays in the India-US trade deal have revived market anxiety.

Rising geopolitical uncertainty, including renewed US expansionary signals, has increased risk aversion and maintained pressure on emerging market currencies. The rupee has immediate support near 90.45, while resistance is positioned around 91.25.

Eight Stock Recommendations for Tuesday

Market experts from Choice Broking, Anand Rathi, and Prabhudas Lilladher have recommended eight stocks for Tuesday's trading session:

Choice Broking Recommendations

Anand Rathi Picks

Prabhudas Lilladher Selections

Market participants should exercise caution and conduct thorough research before making investment decisions, as these recommendations are for educational purposes and represent individual analyst views.