Wall Street closed mixed on Tuesday: Dow surged 559 points to a record high, S&P 500 ticked up 0.2%, while Nasdaq slipped due to weakness in semiconductor and cloud computing stocks.
Dow’s strength was driven by optimism about the potential end to the US government shutdown, although tech stocks were hit by news of SoftBank’s multi-billion dollar Nvidia share sale and a trimmed revenue forecast from CoreWeave.
ADP jobs data came in soft, adding to the mixed view; market leadership rotated into defensive and cyclical names.
Indian ADRs gained strongly: Infosys up 1.46%, ICICI Bank up 1.38%, HDFC Bank up 1.75%, signaling foreign confidence in Indian large-caps.
Asian markets opened mixed but overall positive: Nikkei flat, Hang Seng up, Shanghai flat to negative.
Gift Nifty was around 25,979 in early trade, indicating a higher Nifty open, about 130 points up from Tuesday’s close; this reflects sustained domestic buying absorbing FII selling.
Major global news: President Trump said the US and India are close to a trade deal, with potential reduction of five-fold tariffs due to India’s lower oil imports from Russia; India's Commerce Ministry echoed optimism.
Such a deal could boost India’s IT, pharma, and agricultural exports, offering a strong year-end catalyst for export-focused stocks and FII sentiment.
November has seen FII outflows over ₹12,000 crore, but domestic mutual funds and insurance firms have absorbed about 70% of this, cushioning the market.
Key corporate events to watch: Results from Godrej Industries, Zaggle, Tata Power, Thermax, and BSE. Tata Motors in focus for demerger; monitor Bajaj Finance for guidance cuts and NPA issues.
Nifty’s resistance at 25,850 (next at 26,000); strong support at 25,400–25,200. Bullish recovery pattern in place, but watch lower supports for reversal signals.
Crude oil steady at $60/barrel, gold above $4,100/oz as a safe haven, silver near $50/oz.
Trader/investor playbook: With US-India trade normalization in sight, expect rotational buying in IT, pharma, and exporters. Maintain momentum bias but be alert to profit-taking above Nifty 25,850.
Opening outlook: Markets set for a higher start on global optimism and strong Gift Nifty cues; focus on export themes and sector rotation.