Market Volatility Due to US Tariffs: Sensex Plunges 1,390 Points. Nifty Could Fall to 22,917 if it Breaks Below 23,141. Mixed Global Signals; Investors Advised to Remain Cautious.
Stock Market Today: A weak opening is expected for the domestic stock market on Wednesday (April 2nd). GIFT Nifty futures were trading at 23,313.5 at 7:42 AM, 7 points below the previous Nifty futures close. This indicates that investor sentiment remains cautious.
US Tariffs Implemented
After months of negotiations and speculation, the US government is implementing "reciprocal tariffs" today. This decision has created nervousness among investors as they try to understand which sectors might be affected and its impact on the US and global economies. The tariffs could also impact the Indian stock market, leading to increased volatility.
Sensex-Nifty Performance
The Indian stock market witnessed significant profit-booking on Tuesday. Both the Sensex and Nifty experienced sharp declines.
The Sensex closed down 1,390.41 points or 1.80% at 76,024.51.
The Nifty 50 closed down 353.65 points or 1.50% at 23,165.70.
Foreign Institutional Investors (FIIs) sold Indian shares worth ₹5,901.63 crore on Tuesday, while Domestic Institutional Investors (DIIs) purchased shares worth ₹4,322.58 crore. This indicates weakening investor confidence from foreign investors, while domestic investors continue to buy.
Sensex and Nifty Outlook
According to Devansh Vakil, Head of Prime Research at HDFC Securities, the Nifty-50, having reached 23,141, has completed a 38.2% retracement of the entire rally from 21,964 to 23,869. If the Nifty goes below 23,141, it could fall to 22,917, representing a 50% retracement level. The previous support level of 23,400 could now act as resistance for the Nifty.
According to Srikanth Chouhan, Head of Equity Research at Kotak Securities, a long bearish candle has formed on the daily chart, suggesting that weakness in the market might continue. According to him:
Significant support zones will be at 23,100 for Nifty and 75,800 for Sensex.
If the market manages to trade above this level, a pullback rally to 23,300-23,350 / 76,500-76,650 could be seen.
Global Market Performance
- Mixed trends are observed in international markets.
- Japan's Nikkei is trading down 0.28%.
- South Korea's Kospi is down 0.58%.
- Australia's ASX200 is up 0.2%.
- The S&P 500 in the US is up 0.38%.
- The Nasdaq Composite is up 0.87%.
- The Dow Jones Industrial Average is down 0.03%.
