The Indian stock market faced a challenging week, with the benchmark indices Nifty 50 and Sensex experiencing significant declines amid escalating fears of a global trade war that could adversely impact the US economy. The Nifty 50 dipped 0.69% to close at 22,397.2, while the Sensex fell 0.68%, ending the week at 73,828.91. This downward trend continued for three consecutive days, with both indices dropping around 0.3% on Thursday. Additionally, the Indian markets observed a closure on Friday due to the Holi festival.

Impact of Global Trade Concerns

Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the shorter trading week combined with a sell-off in the US markets is disrupting global conditions. Despite these challenges, India demonstrates resilience and continues to outperform other markets, although it is currently facing a slight downward trend.

Economic Outlook Amid Recession Fears

Concerns about a potential US recession are not significantly affecting the Indian market’s performance. Factors such as easing inflation, expected rate cuts, and government spending are contributing to a rebound in economic fundamentals, particularly as consumer incomes rise in FY26.

Wall Street’s Decline and Its Effects

The US stock market, particularly on Thursday, witnessed a notable slump. The S&P 500 entered correction territory as fears over the trade war intensified, overshadowing positive inflation data. The Dow Jones Industrial Average fell by 537.36 points (1.30%), closing at 40,813.57. The S&P 500 dropped 77.78 points (1.39%) to 5,521.52, while the Nasdaq Composite decreased by 345.44 points (1.96%), ending at 17,303.01.

Asian Markets React to US Trends

As trading began on Friday, Asian stock markets mirrored the downturn seen in US equities, influenced by President Donald Trump’s escalating trade conflict. Futures for Japanese stocks indicated a decline, and Australian shares remained relatively stable.

Nifty 50 Analysis and Predictions

The Nifty 50 index is currently displaying a downward trend across both daily and weekly timeframes, characterized by a series of lower highs and lows. The index is trading below its 20, 50, 100, and 200-day Simple Moving Averages (SMA), reinforcing bearish sentiments. Key support levels to monitor include 22,200; a breach could lead to further declines towards 22,000-21,800. Resistance is anticipated in the 22,700-23,000 range.

Stock Insights and Recommendations

Here are some notable stocks and their trends:

• Sun Pharmaceutical Industries Ltd (CMP: ₹1,680): The stock has shown a strong recovery, forming a "morning star" pattern on weekly charts, indicating a possible trend reversal. It remains above its 20-day SMA, suggesting a positive bias. Traders are encouraged to buy, hold, and accumulate, with potential upside targets of ₹1,750-1,800 and a downside support around ₹1,600.

• Avanti Feeds Ltd (CMP: ₹837): This stock is on a robust upward trajectory, forming higher tops and bottoms. It has confirmed a "rounding bottom" breakout at ₹800. With all SMAs trending upward, investors are advised to buy and hold, eyeing an upside of ₹885-950 and support levels of ₹800-770.

• Coromandel International Ltd (CMP: ₹1,794): This stock has broken through key resistance levels, indicating strong bullish momentum. With the daily RSI in favorable territory, it’s recommended to buy, hold, and accumulate, targeting an upside of ₹1,885-1,950 and a support zone at ₹1,700-1,680.

Conclusion

The Indian markets are navigating through challenging waters with a mix of global concerns and local resilience. As traders and investors look for opportunities, staying informed about market trends and stock performance is crucial. For more insights and updates, check reliable financial news sources.