The Indian stock market experienced significant fluctuations on Monday, primarily driven by negative global sentiment stemming from Donald Trump’s tariffs. The Nifty 50 index opened dramatically lower, with a staggering 5% gap down, marking its steepest decline at the start of trading since March 23, 2020. While the index showed some resilience, it ultimately closed down by 742 points, or 3.24%, finishing at 22,161. Similarly, the BSE Sensex dropped by 2,226 points, settling at 73,137, while the Bank Nifty index lost 1,642 points, closing at 49,860.
Market Overview: A Tumultuous Day
The overall market trend mirrored a chaotic day, often referred to as "Black Monday," as the BSE Small-cap index plummeted by 4.13% and the Mid-cap index fell by 3.46%. The Indian volatility index (VIX) surged over 65%, finishing at 22.79, indicating heightened uncertainty among investors.
Expert Insights on Market Trends
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, shared her perspective on the bearish sentiment gripping the market. According to her, the Nifty 50’s drop below the 22,000 mark has intensified panic selling on Dalal Street.
"The Nifty 50’s significant decline has dampened investor confidence," Parekh remarked. "If the selling pressure continues, we could see the index testing 21,400 and 21,100 levels."
Future Projections for Nifty 50
Parekh further elaborated on the Nifty’s potential trajectory, stating:
- A significant rebound is essential for the index to surpass 22,800 to regain bullish momentum.
- Current support is noted at 21,900, while resistance stands at 22,300.
The Bank Nifty Outlook
The Bank Nifty index faced its challenges, dropping below 49,500 during the opening session. It closed near 49,900, particularly as the market awaits the RBI policy outcome in the coming days.
- Crucial support for the Bank Nifty is around 47,900.
- To regain a positive bias, it must break through the 51,000 level, which corresponds to the 200-period moving average.
Stock Recommendations for Tuesday
For those looking to navigate the turbulent market, Parekh has suggested several stocks to consider for trading:
- GMR Airports: Buy at ₹82.20, Target: ₹86, Stop Loss: ₹80.
- Delhivery: Buy at ₹268.35, Target: ₹280, Stop Loss: ₹262.
- Archean Chemical Industries: Buy at ₹529, Target: ₹560, Stop Loss: ₹515.
Conclusion
In this volatile market environment, it’s essential for investors to remain cautious and wait for clearer signals before making significant moves. Pay attention to support and resistance levels, and keep an eye on upcoming economic policies that could influence market direction.
