Gap-Up Hopes Amid Cautious Trading: Trump’s Tariff Cut Sparks Global Buzz, But Key Resistance Remains

Good morning, all 

Drawing on the last trading session, the market now faces a critical day. Despite the lackluster finish last session, there’s a glimmer of optimism from global cues.

• Nifty 50 closed down by 0.61% at 22,399

• Bank Nifty lost 0.54%, ending at 50,240

NIFTY ANALYSIS

Price Action:
Nifty ended with a weak candle – a sign of indecision that shows bulls and bears are still battling for control.

OI Data & PCR:

• OI of Nifty 50 Futures dropped -1.47%, indicating Long Unwinding

• PCR stands at 1.25 near ATM and 0.70 overall – showing a neutral to slightly bullish bias; however, note that this isn’t very reliable on the first day after expiry.

Key Levels:

• Resistance: 22,700 – 22,800

• Support: 22,400

Global News Impact:
Yesterday, US President Donald Trump announced a tariff cut on imports from non-China countries—a move that sparked optimism globally. This news is expected to drive a gap-up open as traders digest the positive global sentiment. However, caution remains warranted.

View: Cautious
Even if a gap-up occurs, wait for the price to settle above 22,700 before considering aggressive longs.

BANK NIFTY ANALYSIS

Price Action:
Bank Nifty closed with a small-bodied candle with long wick—reflecting market indecision despite holding near the key support around 50,000.

OI Data:

• OI of Bank Nifty Futures dropped -0.37%, also signaling Long Unwinding

Key Levels:

• Resistance: 50,750

• Support: 50,000

View: Cautious
While there’s potential for a gap-up, sustained strength above 50,750 is essential. Until then, trade lightly and avoid chasing early moves.

Let’s see what the market brings today. Stay sharp, manage your risk