The markets have been rangebound for the better part of the week. However, this morning, all eyes are on the RBI‘s Monetary Policy decision and the implication of the ongoing tussle between US President Donald Trump and Elon Musk.
Most market observers believe that the uncertainty, which has been looming large on the global economic horizon, has spiked with the open spat between President Trump and Elon Musk. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments explained that “This unprecedented clash between two of the world’s most powerful and mercurial personalities will have its consequences on the policies of the US administration. Chinese restrictions on exports of rare earth minerals and magnets, in response to the reciprocal tariffs imposed by US, have already started impacting the EV automobile industry. US is likely to end 2025 with a GDP growth of mere 1%. US bond yields are likely to fall further which will be positive for EMs, particularly India, whose growth prospects are the brightest.”
Can the Nifty scale past 25,000?
The Nifty has been rather muted this week. It has maintained a tight range this week. Shrikant Chouhan, Head – Equity Research, Kotak Securities believes that from a technical perspective, “24,600/81,000 will serve as a key support zone for traders. As long as the market remains above this level, bullish sentiment is likely to persist. On the upside, the market could potentially rise to the range of 24,900 to 25,000/82,000-82,200. Conversely, a drop below 24,500/81,000 could alter this sentiment, with potential retest levels between 24,350 and 24,150/80,600 and 80,100 thereafter.”
Anand James, Chief Market Strategist, Geojit Investments added that the “Downsides appear limited for now, with 24,598 offering support. There after support is seen at 24,500 and then at 24,398 and 24,060 levels. The Upside prospects will improve above 24,850, in which case 25,077-25,235 could be key levels to watch out for next.”
The overall sentiment remains subdued as investors weigh various factors affecting global trade including Chinese Presdent Xi’s talks with US President and other key factors.