Dear Trader…
The markets began the new financial year on a
weak note, declining nearly 1.5% due to unfavorable global cues. Uncertainty
surrounding the U.S. reciprocal tariff rates ahead of the April 2 deadline and
its potential impact on global trade led to a negative opening, which worsened
as the session progressed. As a result, the Nifty index closed near the day’s
low at 23,321.40 level.
All major sectors came under pressure, with
realty, IT, and financials among the top losers. However, the broader indices
showed relative resilience, losing less than a percent each.
Market participants are closely monitoring the
ongoing tariff talks and their sectoral impact, leading to profit-booking
following the recent rebound. Additionally, the Nifty index, which had been consolidating,
has slipped below its range and breached the moving average ribbon support at
23,400.
The next crucial support lies around 23,100 (20
DEMA), and a breakdown below this level could further dampen sentiment, whereas
holding above it may pave the way for a recovery. Given the mixed signals, it
is advisable to be cautious with index positions and maintain a stock-specific
trading approach.
Nifty futures opened at 23530 points against the
previous close of 23637 and opened at a low of 23290 points. Nifty Future
closed with an average movement of 378 points and a decline of around 316 points
and 23321 points…!!
On the NSE, the midcap 100 index will decline 0.86%
and smallcap 100 index is closing decline 0.70%. Speaking of various sectoral
indices, the NSE saw gains in only Media and Oil and Gas stocks, while all
other sectoral indices closed lower.
At
the start of intra-day trading, April gold opened at Rs.90654, fell from a high
of Rs.91065 points to a low of Rs.90510 with a rise of 659 points, a trend of
around Rs.90779 and May Silver opened at Rs.100398, fell from a high of Rs.100975
points to a low of Rs.99757 with a decline of 106 points, a trend of around Rs.99959.
Meanwhile,
market fluctuations may continue until there is more clarity on global trade
relations and economic policies as investors remain concern about Trump’s
tariff policies and their impact on international trade.
Amid
heightened global volatility ahead of the anticipated US reciprocal tariff
announcement tomorrow (US time), the domestic market witnessed a significant
sell-off today. Investors are eagerly awaiting the specifics of these tariffs
while also keeping a close eye on ongoing negotiations for a potential Indo-US
trade agreement.
Technically,
the important key resistances are placed in Nifty future are at 23373 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 23404 – 23474 levels. Immediate support is placed at 23088
– 23008 levels.
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