The Indian stock market is gearing up for a challenging start as the benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday. The downturn follows a significant sell-off in global markets triggered by U.S. President Donald Trump’s announcement of new tariffs. This move involves a 10% baseline tariff on imports, affecting over 180 countries. As a result, early indications from the Gift Nifty suggest a potential gap-down opening, with trading around 23,171, reflecting a decline of approximately 267 points from the previous close of Nifty futures.

Global Market Impact

The announcement of reciprocal tariffs is sending shockwaves through Asian markets, contributing to a widespread decline. Key highlights include:

• MSCI’s broadest index for Asia-Pacific shares (excluding Japan) plummeted by more than 1%.
• The Nikkei index in Japan experienced a dramatic fall, hitting an eight-month low after dropping by as much as 4.6% to 34,102.00.
• Other Asian indices also faced significant losses, including:
  • South Korea’s Kospi: down 1.57%
  • Hong Kong’s Hang Seng: decreased by 2%
  • CSI300 index: fell 0.24% in China

Domestic Market Overview

Despite the global turmoil, the Indian equity market showed resilience on Wednesday. The Nifty 50 closed above the 23,300 mark, while Sensex rose by 592.93 points, or 0.78%, finishing at 76,617.44. The Nifty 50 saw a gain of 166.65 points, closing at 23,332.35.

Nifty 50 Outlook

Looking ahead, the Nifty 50 has shown signs of recovery, closing higher by 166 points on April 2. Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, noted a formation of a bullish harami pattern. This pattern could suggest a reversal in market sentiment. Key levels to monitor include:

• Immediate support: 23,100
• Resistance levels: 23,400 and 23,650

Om Mehra, Technical Research Analyst at SAMCO Securities, highlighted the index’s strength above its 9-EMA and 50-EMA, indicating a favorable outlook. The daily RSI currently sits at 56, reflecting bullish momentum, with resistance expected at 23,520 and 23,600.

Bank Nifty Predictions

The Bank Nifty also displayed strength, surging 520.55 points to close at 51,348.05 on Wednesday, forming a bullish candlestick. Analysts suggest that this index remains robust, with potential for further gains. Key support levels include:

• 50,500 to 50,000
• Expected upward movement towards 52,050 and potentially 53,000 in the coming weeks.

Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, stressed the importance of the 200-Day Simple Moving Average (around 51,020) as a support level. Traders are encouraged to adopt a buy-on-dips strategy.

Final Thoughts

As the Indian market navigates these turbulent waters, both the Nifty 50 and Bank Nifty present opportunities for investors willing to engage. With key levels established and analysts predicting potential rebounds, market participants should remain vigilant and strategic in their approaches.