GIFT Nifty Flashes Gap-Up Start After US Court Kills Trump Tariffs — Risk-On Trade Back in Force

GIFT Nifty Flashes Gap-Up Start After US Court Kills Trump Tariffs — Risk-On Trade Back in Force
GIFT Nifty Flashes Gap-Up Start After US Court Kills Trump Tariffs—Risk-On Trade Back in Force
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Indian markets are set for a strong bullish opening, with GIFT Nifty indicating a +170 to +330 point gap-up, after a historic US Supreme Court ruling struck down Donald Trump’s sweeping global tariffs, triggering a powerful global risk-on rally across equities, currencies, and commodities.

This ruling removes one of the biggest macro overhangs for global trade, earnings visibility, and FII risk appetite, instantly flipping market psychology from:

Defensive → Aggressive Risk-Taking

Core Market Setup

  • GIFT Nifty: +170 to +330 pts → 25,730 – 25,900 zone

  • Asian Markets: Broad-based rally (Kospi at record highs, Hang Seng +2.4%)

  • Wall Street: S&P +0.69%, Nasdaq +0.90%, Dow +0.47%

  • Dollar Index: Weak → EM inflows supportive

What Triggered This Global Risk-On Surge?

The US Supreme Court, in a 6–3 verdict, ruled that Trump’s use of emergency powers to impose global tariffs was illegal, dismantling a key pillar of his aggressive trade policy framework.

Immediate Global Repricing:

  • Trade uncertainty collapses

  • Export earnings visibility improves

  • Risk assets re-rate higher

  • Safe-haven trades unwind

Although Trump retaliated with a temporary 15% global tariff order, markets are treating this as short-term noise vs. long-term structural relief.

India Market Setup—Key Trading Levels

Nifty 50

  • Support: 25,450–25,520

  • Breakout Zone: 25,750

  • Bull Target: 25,900 → 26,000 (lifetime highs retest)

Bank Nifty

  • Support: 56,200

  • Upside Zone: 56,900 → 57,300

Sectoral Impact Matrix—Where Traders Can Find Alpha

Biggest Beneficiaries

  • Metals & Mining: Trade normalization and China reopening optimism

  • Capital Goods & Infra: Risk-on flows + domestic capex revival

  • PSU Banks: Liquidity rotation + macro relief

  • Autos: Export visibility + currency tailwind

Neutral to Cautious

  • IT Services: Dollar weakness caps short-term upside

  • Pharma: Defensive rotation fades temporarily

Stocks in Focus Today

🔹 RailTel—Order Win Momentum + Infra Capex Supercycle

Fresh order inflows and PSU infrastructure spending acceleration keep RailTel firmly positioned in the high-momentum breakout basket. Traders will track volume expansion and continuation patterns.

Market Signal: Bullish | Momentum continuation
Theme: Railway capex + digital infra expansion

🔹 IDFC First Bank—Regulatory & Governance Re-rating Watch

Key regulatory and governance developments could unlock valuation re-rating, making IDFC First a high-volatility opportunity stock for positional traders.

Market Signal: Event-driven | Volatility play
Theme: Banking consolidation and governance reset

🔹 AXISCADES—HAL Defence Electronics Order | Make-in-India Multiplier

Fresh HAL defence electronics order strengthens AXISCADES’ position in the ₹50,000 crore defence electronics opportunity, reinforcing earnings visibility and valuation expansion triggers.

Market Signal: Structural bullish | Theme breakout
Theme: Defence indigenisation + electronics shift

🔹 Vikram Solar—Large Solar Cell Supply Deal | Clean Energy Momentum

Major solar supply contract boosts capacity utilization and revenue visibility, keeping Vikram Solar in focus amid India’s renewable energy manufacturing push.

Market Signal: Momentum + structural
Theme: Energy transition + solar manufacturing

Why Traders Must Track These Stocks Today

These stocks sit at the intersection of three powerful market forces:

✔ Infra + Capex Revival
✔ Defence Indigenisation Supercycle
✔ Clean Energy Manufacturing Boom

➡️ This alignment creates high-probability breakout and momentum continuation setups for intraday and positional traders.

Trader Strategy Snapshot

  • Momentum Basket: RailTel, Vikram Solar

  • Event & Re-rating Play: IDFC First Bank

  • Theme Breakout Stock: AXISCADES

WHY THIS MATTERS TODAY

This is not just a sentiment bounce—it is a structural risk reset event.

The removal of sweeping tariffs:

  • Reprices global growth expectations

  • Improves earnings visibility for export-linked Indian sectors

  • Reopens FII risk-on flows into emerging markets

  • Restores confidence in global trade normalization

Market Positioning Shift:

➡️ From: Sell-on-rise → To: Buy-on-dips

Trading Implication:

A sustained breakout above 25,750 could trigger momentum expansion toward 26,000+, setting up fresh trend continuation trades.

Trader Playbook—How to Trade This Setup

Intraday Strategy

  • Buy early dips toward 25,600–25,650.

  • Target 25,850–25,950

  • Stop below 25,480

Positional Strategy

  • Accumulate PSU Banks, Metals, Infra, Defence Electronics

  • Avoid aggressive IT longs until USD stabilizes

FAQ

Q1: Why is GIFT Nifty rising sharply today?

Because the US Supreme Court struck down Trump’s global tariffs, removing a major macro risk, triggering global equity buying and EM inflows.

Q2: How will this impact Indian markets?

It boosts risk appetite, FII flows, export sentiment, and earnings visibility, supporting a bullish breakout setup.

Q3: Is 26,000 possible on Nifty?

Yes. If 25,750 holds, technical momentum can carry Nifty toward the 25,900–26,000 zone.

Q4: Which sectors benefit most?

Metals, Capital Goods, PSU Banks, Infra, Autos, and Defence Electronics.

Q5: What is the biggest risk?

Trump’s temporary 15% tariff order and geopolitical headlines, though currently treated as short-term noise.

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