On Friday, the Indian stock market faced a downturn as the benchmark indices, Nifty 50 and Sensex, experienced notable declines. The technology sector, already under pressure, contributed to this dip amid rising worries about a potential recession in the United States influencing growth prospects. Early trading saw the Sensex fall by 509.54 points, landing at 75,785.82, while the Nifty 50 dropped 146.05 points, settling at 23,104.05.

Impact of US Tariffs on Indian Market

The recent announcement from the US government introduced a 10% standard tariff on all imports, coupled with elevated reciprocal tariffs targeting trading partners with a trade surplus against the US. For India, this resulted in a retaliatory tariff of 27%, which, while substantial, is still lower than the tariffs imposed on countries like China (34%), Vietnam (46%), and Bangladesh (37%).

Market Sentiment and Expert Insights

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the prevailing market uncertainty. He expressed concerns about an escalating trade conflict initiated by former President Trump, which may provoke retaliatory measures from other nations, including China and the European Union. This scenario suggests that both global trade and economic growth could face inevitable slowdowns.

• Key Observations:
  • Significant volatility expected in markets.
  • Ongoing trade tensions likely to contribute to confusion and uncertainty.

Nifty 50 Analysis and Future Projections

In recent sessions, the Nifty 50 has seen profit booking around the 23,100 mark, which is viewed as a critical support area. Currently, the index remains above its 20-day and 50-day Simple Moving Averages (SMA), indicating positive market sentiment. Analysts predict that the index could rally towards the 23,800-24,000 range, with support established around 23,200-23,000 levels. The Relative Strength Index (RSI) also reflects a bullish trend.

Stock Recommendations

Angel One Ltd (CMP: ₹2,454)

The daily chart for Angel One illustrates a confirmed "flag" pattern, indicating a continuation of bullish momentum at the 2,400 levels, supported by robust volumes. Investors are encouraged to buy and hold, aiming for an upside of ₹2,600-₹2,800, with support between ₹2,400-₹2,300.

Godawari Power and Ispat Ltd (CMP: ₹205)

Godawari Power has successfully broken through a significant resistance zone at 192, accompanied by strong trading volumes. The stock is positioned favorably above multiple SMA levels, suggesting continued strength. Investors should look to acquire, aiming for a potential rise to ₹225-₹235, with support expected around ₹198-₹192.

PNB Housing Finance Ltd (CMP: ₹939)

A breakout from a declining channel around 880 has been confirmed for PNB Housing, with significant volumes backing this movement. The stock’s position above all key SMAs indicates a positive trend. The expected upside is ₹1,015-₹1,085, while support is projected between ₹900-₹870.

Conclusion

As the Indian stock market navigates through turbulent waters influenced by international trade dynamics, investors should remain vigilant. The insights from market experts and technical indicators can provide valuable guidance in these uncertain times. For further information on investment strategies and detailed market analysis, feel free to explore additional resources.