The recent trading session has left investors with a sense of unease as the Nifty 50 and Sensex experienced significant declines. The Nifty 50 dropped by 1.495%, closing at 22,904.45 points, while the Sensex fell by 1.22%, ending at 73,364.69 points. Concerns surrounding the future of global trade, particularly in light of aggressive tariff policies from the U.S. under President Trump, have contributed to this downward trend.

Market Support and Resistance Levels

Moving forward, analysts are closely watching key support levels for the Nifty 50. According to Dhupesh Dhameja, a derivatives research analyst at SAMCO Securities, short-term support is anticipated in the 22,800-22,700 range. A break below these levels could lead to further declines. He noted, “A decisive breach below 22,800 might pave the way for deeper market corrections.” On the upside, the 23,000 mark is identified as a resistance level, suggesting that traders should adopt a ‘sell-on-rise’ strategy.

In the Bank Nifty, critical support lies around the 51,000 level. Amol Athawale, VP of technical research at Kotak Securities, emphasized that as long as the Bank Nifty maintains its position above this threshold, the bullish trend is likely to persist. Conversely, if it dips below 51,000, it could indicate a shift in market sentiment, prompting traders to reconsider their positions.

Global Market Influence

The downturn in Indian markets is largely influenced by a broader global trend. Anxiety over U.S. tariffs has cast a shadow over market sentiment. On Monday, Asia-Pacific markets also faced declines, with the Nikkei 225 and Kospi experiencing significant drops of 7.44% and 5.55%, respectively. This follows a grim week in U.S. markets, where the Dow Jones and S&P 500 saw their largest two-day declines in years, closing down 5.50% and 5.97%.

Foreign Investment Trends

In terms of investment activity, foreign portfolio investors have been net sellers for five consecutive sessions, offloading approximately ₹3,484 crore in equities. Domestic institutional investors also shifted to a selling position, selling ₹1,720.32 crore worth of stocks after a period of buying.

Notable Stock Movements

Several companies are making headlines amid the market turmoil:

• Godrej Industries is set to develop a project in Versova, Mumbai, with a projected revenue potential of ₹1,350 crore.
• Mazagon Dock Shipbuilders has confirmed an oversubscription option for its share offer, increasing the total size to 1.61 crore shares.
• Indian Bank reported robust growth with total business reaching ₹13.3 lakh crore and total deposits climbing to ₹7.4 lakh crore.

Currency Market Update

In the currency market, the Indian rupee strengthened against the U.S. dollar, appreciating by 21 paise to close at 85.23. This move was influenced by lower oil prices and concerns about the potential impact of U.S. tariffs on the U.S. economy. The rupee’s intraday gain marked its most significant rise against the dollar since late March.

As traders navigate these turbulent waters, the focus remains on key technical levels and external economic factors that could influence market trajectories in the coming days.