As global investors closely monitor geopolitical developments, the Indian stock market is set to open on May 29 with heightened anticipation. The latest catalyst? Former US President Donald Trump’s decision to block new tariffs, a move that could have ripple effects across emerging markets, including India. With Nifty 50 and Sensex showing mixed signals in recent sessions, here’s a detailed breakdown of what traders and investors should expect in the upcoming trading day.
Key Highlights:
- Global Market Reaction to Trump’s tariff stance
- SGX Nifty indications for May 29
- Technical outlook for Nifty 50 and Sensex
- Sector-wise performance expectations
- FII & DII activity trends
- Expert forecasts and investor strategy
1. Trump’s Tariff Block: What It Means for Global Markets
Donald Trump’s recent announcement to block additional tariffs on Chinese imports has introduced a new twist in the global trade narrative. This unexpected restraint from his usually aggressive trade policy signals a pro-market stance, which has already led to:
- A mild rally in US futures
- Stabilization in Asian markets
- Softening of the US Dollar Index
This global development could ease investor sentiment across emerging economies, including India, which is often sensitive to international trade tensions.
2. SGX Nifty Trends: Early Signals
As of early May 29 trade, the SGX Nifty is indicating a flat to slightly positive opening for Indian equities. After a choppy week influenced by election-related uncertainty and global macro signals, today’s cues suggest:
- A sideways opening with a buy-on-dips sentiment
- Nifty facing key resistance near 23,000
- Support expected around the 22,700–22,800 levels
3. Nifty 50 & Sensex Technical Outlook
Nifty 50:
- Previous Close: 22,932.45
- Resistance Levels: 23,000 / 23,050
- Support Levels: 22,800 / 22,650
- RSI and MACD indicate neutral momentum, but sentiment may improve if global cues stay favorable.
Sensex:
- Previous Close: 75,410.39
- Resistance Zone: 75,800–76,000
- Support Zone: 74,800–75,000
- A breakout above 76,000 could signal bullish continuation.
4. Sector-Wise Expectations
IT Stocks:
- May benefit from weaker US dollar and improved sentiment due to Trump’s softened stance.
- Watch stocks like Infosys, TCS, and Wipro.
Metals and Auto:
- A global trade easing could uplift metal stocks.
- Auto stocks may gain from input cost relief and stable demand outlook.
Banking & Financials:
- RBI policy cues and stable bond yields may help private banks and NBFCs post mild gains.
Energy & FMCG:
- Likely to remain range-bound; investors may adopt a wait-and-watch approach.
5. FII & DII Activity on Watch
Recent data shows Foreign Institutional Investors (FIIs) were net sellers, mainly due to election jitters and global cues. However:
- Trump’s latest move may reduce risk aversion
- We may see inflows into large-cap and defensive stocks
- Domestic Institutional Investors (DIIs) continue to support the market with consistent buying
6. What Experts Are Saying
Anuj Kapoor, Senior Market Analyst at InvestNow Capital, says:
“While the market remains cautiously optimistic, Trump’s latest tariff U-turn could act as a short-term tailwind. Traders should focus on fundamentally strong stocks and wait for confirmation above key resistance levels.”
Ritika Shah, Head of Equity Strategy at MarketPulse, adds:
“Expect volatility to remain ahead of India’s election outcome. Global cues may offer relief rallies, but sustainable upside depends on domestic clarity.”
7. Investor Strategy for May 29
- Short-term traders: Focus on momentum plays in IT and Auto
- Positional investors: Stay stock-specific; avoid over-leveraging ahead of major events
- Risk-averse traders: Hedge portfolios and maintain stop losses
- Long-term investors: Watch for dips in blue-chip stocks for accumulation
Final Thoughts
With global trade tensions easing at least temporarily thanks to Trump’s unexpected tariff block, Indian markets may find short-term stability. However, domestic triggers like election outcomes and macroeconomic indicators will continue to drive overall sentiment. For May 29, a range-bound to slightly bullish session is likely, led by select sectors and large-cap stocks.
