India-US Trade Deal: Nifty Gap up May Scale Steep Hurdles

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Analysts claim that Indian markets may see a major short covering rally

By S JHA

Mumbai, February 3, 2026 — The Indian markets will react to the announcement of India-US trade deal. India now has a much-reduced tariff of 18 percent. India faced 50 percent tariffs earlier. But the effective tariff was 35 percent due to exemptions.

From the Budget Day selloff to rebound yesterday, Indian markets seemed to have already hit the bottom. Nifty sharply rebounded from 24680 level in the yesterday’s session. The bounce was led by sharp gains in the stocks of PowerGrid, Reliance Industries, Tata Motors Passenger, and others.

Chartists claim that Nifty’s steep hurdles are placed at 25200 and 25440. Indications suggest that Nifty may with a gap up open way above the two key hurdles. Chartists also don’t rule out a massive, short covering on Tuesday as it also coincides with the weekly expiry of the index.

“The broader structure continues to reflect a lower top–lower bottom formation, and multiple overhead resistances could make any sustained upside challenging. Immediate resistance is placed near the 200DSMA around 25200, followed by a stronger hurdle at the Budget Day high of 25440,” said Angel One in a market note shared with clients.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market.)