The Nifty 50 index appears set to maintain its position without revisiting the March 2024 lows, despite the ongoing global economic turbulence. This uncertainty is heightened by recent tariffs imposed on China by U.S. President Donald Trump, which have raised concerns among investors.
Market Stability amid Global Turmoil
In March 2024, the Nifty 50 hit a low of 21,964, but market analysts believe it is unlikely that these levels will be tested again today. Experts suggest that while the index may experience fluctuations, it is expected to hold steady above critical support levels.
- Key Support Levels:
- Immediate support at 22,250
- Secondary support at 21,900
Ajit Mishra, Senior Vice President of Research at Religare Broking, emphasized that the Nifty 50’s key support is at 22,250. He mentioned that if this level is crossed, the index could potentially slide to 21,900, although he considers this scenario improbable.
Potential Market Movements
Sunil Jain, Senior Vice President of Alternative Research at Elara Capital, projected that the Nifty 50 could dip to a range of 22,150 to 22,200. This outlook reflects cautious sentiment as traders navigate the current economic landscape.
- Resistance Points:
- 22,700: Likely cap on gains
- 22,900: High resistance if breached
Jatin Gedia, a Technical Research Analyst at Mirae Asset Sharekhan, offered a more optimistic perspective, stating that the Nifty is currently retracing its previous gains from 21,964 to 22,677. He believes that the index could settle between 22,405 and 22,320, corresponding to the 38.2% and 50% Fibonacci retracement levels.
The Tariff Impact on the Market
In a significant development, the United States has announced a 104% tariff on Chinese imports, effective from 12:01 AM ET (0401 GMT) on Wednesday. This decision comes after China failed to lift its retaliatory tariffs on American goods by a deadline set by Trump. As tensions escalate, the tariff conflict has intensified, particularly affecting businesses like Shein and Temu, which rely heavily on imported goods.
Nifty’s Recent Performance
In the latest trading session, the NSE Nifty 50 saw an increase of 374 points, or 1.69%, closing at 22,536. Meanwhile, the BSE Sensex rose by 1,089 points, or 1.49%, finishing the day at 74,227.
As traders continue to monitor the situation, the Nifty 50’s resilience will depend on how it reacts to both domestic and international economic pressures.
