Nifty Slips Below 25,500 As Trade Tensions Cloud Market Mood; IT, Metal Stocks Under Pressure

Indian equity markets open subdued on Wednesday as investors await a breakthrough on the US-India trade deal. Meanwhile, US President Donald Trump has threatened steep tariffs: 200% on pharma, 50% on copper and semiconductors, and a 10% levy on pharma imports and BRICS goods, adding to the tariff tensions. 

At 09:40 a.m. IST, the Nifty 50 traded 37 points lower at 25,484, while the Sensex was down 157 points at 83,554. Broader markets saw recovery in early trade with the Nifty Midcap index rising 0.1% and the Smallcap index gaining 0.5%. 

However, the retail sentiment on Stocktwits for Nifty has flipped to ‘neutral’ from ‘bullish’ a day ago.

Sectorally, it’s a mixed bag, with FMCG, pharma, and consumer durables gaining strength, while IT, metals, and banks reeled under pressure. 

In stock-specific moves, HUL and Asian Paints were top Nifty gainers, rising over 1% after Jefferies identified these stocks as promising contra bets.

Dixon Technologies rose 2% after the company formed a 50:50 joint venture with Signify Innovations India to expand its presence in the lighting sector.

Union Bank of India shares slipped 4% after the bank reported a 5% growth in global business to ₹22.14 lakh crore in its first quarter operational update. 

Lupin rose 2% after signing a pact with Zentiva to commercialize biosimilar Certolizumab Pegol globally. It is a drug used to treat autoimmune diseases. 

Synergy Green surged 9% on securing a development order from Adani Wind for turbine parts. Bajel Projects rose 5% on its plans to invest ₹170 crore to expand its Ranjangaon plant’s galvanization capacity to 1.1 lakh MTPA by FY27.

From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup. 

Ashish Kyal highlighted that if the Nifty index breaks above 25,560, it is expected to advance toward 25,640 and then 25,690. On the downside, it is crucial that the index holds above 25,420; a move below this level could result in a continued range-bound trade. He added that a key time window for a momentum move is around 10:30 am.

Prabhat Mittal pegged Nifty support at 25,390 and resistance at 25,620. For the Bank Nifty, he sees support at 56,900 and resistance at 57,500.

Analyst Varunkumar Patel noted that Foreign Institutional Investors (FIIs) sold ₹26 crore in cash equities while building a fresh net short position in index futures and options. The global sentiment remains neutral, with no significant panic over tariffs. He believes that this could be an opportune time to focus on stocks hitting 52-week or all-time highs on a daily basis. Copper prices surged the most in years, likely boosting the metal sector, particularly for copper producers such as Vedanta and Hindustan Copper. Trade strategy focuses on buying quality stocks with a stop-loss.

Globally, Asian markets traded mixed, while crude oil prices rose to a two-week high.

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