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.

Indian equity markets ended lower on Monday as global trade tensions resurfaced following U.S. President Trump's announcement of new tariff threats against European nations. The selling pressure was amplified by ongoing foreign institutional investor (FII) outflows and mixed domestic earnings results.

Market Performance

The benchmark indices witnessed significant intraday volatility before closing in negative territory. The BSE Sensex experienced substantial pressure during trading hours, touching an intraday low of 82,941.01 after falling as much as 629 points.

Global Trade Tensions Impact

The market decline was primarily attributed to renewed trade war concerns after Trump announced plans to impose additional 10% tariffs on goods imported from eight European nations including Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain. These tariffs are scheduled to begin February 1 and escalate to 25% by June 1 if no agreement on Greenland is reached.

Vinod Nair, Head of Research at Geojit Investments, explained that this development triggered a broad risk-off mood across global equity markets, prompting investors to rotate toward safe-haven assets like gold. Major European Union states condemned the tariff threats, with France proposing economic countermeasures in response.

European Market Response

European markets reflected similar negative sentiment, with the STOXX 600 index falling 1.2%. Blue-chip indexes across major European financial centers showed declines ranging from 0.4% to 1.7% in Frankfurt, Paris and London. U.S. markets remained closed for Martin Luther King Jr Day.

Technical Analysis and Market Outlook

Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty remained under bearish control throughout the session, sustaining below the 20 EMA. The technical indicators painted a concerning picture with persistent intraday volatility and selling pressure on every rise.

Trading Activity and Stock Performance

Market breadth remained weak with bearish sentiment dominating across sectors. Out of 4,483 stocks traded on BSE, 3,075 witnessed declines while only 1,226 saw advances, and 182 remained unchanged.

Most Active Stocks by Value:

• HDFC Bank: ₹3,543 crore
• ICICI Bank: ₹3,202 crore
• Reliance Industries: ₹2,886 crore
• Eternal: ₹2,359 crore
• Netweb Technologies: ₹2,260 crore

Stocks Under Selling Pressure: Wipro, RBL Bank, IDBI Bank, MRPL, HBL Power, Reliance Infrastructure and Jubilant Pharmova witnessed significant selling pressure.

Stocks Showing Buying Interest: Despite the overall negative sentiment, certain stocks attracted buying interest including Jindal Saw, Welspun Corp, JSW Infrastructure, CG Power and Industrial Solutions, ABB Power, InterGlobe Aviation and Polycab India.

Market Outlook

Analysts expect continued consolidation given the combination of global uncertainty and domestic triggers. With Q3 earnings season progressing and mixed performance results, stock-specific volatility is likely to persist. The ongoing FII outflows continue to weigh on domestic sentiment, while select Asian markets, particularly China, have shown relative resilience supported by favorable macro indicators and stronger-than-expected export-driven GDP growth.