By theindianinvestor 
Tuesday, 4th February 2025
Time : 8:30 AM IST
insights :
1. Yesterday, Nifty fell by 121 points and closed at 23,361. The fall was due to Trump’s tariff on Mexico, Canada, and China.
2. Markets closed above 23,350, which is an important level of support.
3. Nifty Midcap and Smallcap indices were down by 0.9% and 2%, respectively. Yesterday’s fall was a broader market sell-off.
4. The Dollar Index is now troubling our markets. Yesterday, it rose to 109.5, causing the Rupee to hit a low of 87.3 per dollar.
5. US bond yields are consolidating at 4.5% levels.
6. Yesterday, Trump suspended tariff relief for one month to Mexico after discussions with the Mexican president.
7. FII’s sold more than Rs. 3,900 crores in the cash market yesterday.
8. FII’s net shorts increased and now stand at 90%.
9. Now, focus shifts towards the RBI MPC meeting, where markets are expecting a 25 basis point rate cut.
10. However, the depreciating Rupee could delay a rate cut, as it may lead to higher inflation through imports.
11. We have to wait and watch what decision the RBI takes.
12. US markets closed marginally in red, down by 0.28%. At one point, the Dow was down nearly 550 points but recovered most of its losses.
13. Asian markets are trading higher.
14. GIFT Nifty is indicating a 120-point gap-up opening.
15. Now, focus is on SBI results, which are due on 6th Feb. On the same day, we also have ITC results.
16. Nifty support is at 23,350, and resistance is around 23,500. If markets sustain above 23,500, we could see a short rally towards 23,800.