The Indian stock market experienced a significant downturn on Friday, largely influenced by the recent tariffs imposed by Donald Trump. The Nifty 50 index plunged 345 points, closing at 22,904, while the BSE Sensex fell sharply by 930 points, settling at 75,364. The Bank Nifty index also saw a drop of 94 points, finishing at 51,502. Additionally, the BSE Small-cap index dropped by 3.43%, and the Mid-cap index experienced a decline of about 3.08% during trading.

Market Sentiment and Projections

Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, expressed that the sentiment in the Indian stock market remains predominantly sideways to negative. He noted that the Nifty 50 index is currently fluctuating within the range of 22,000 to 23,900, with potential support forming around the 22,000 level.

Kothari commented, "At this point, the Nifty 50 has once again retreated from the resistance zone near 23,800, and is currently hovering around 23,000. We anticipate that the bottom of this five-month correction is likely near 22,000. The recent 800-point drop looks like a temporary pullback within a broader 1,900-point rally. The 22,900 – 22,600 range is emerging as a robust support level. If the index bounces back from this area, it may form a bullish inverse Head and Shoulders pattern, with the current decline potentially acting as the right shoulder. However, a breakout above 23,800 would confirm this pattern, paving the way for further gains."

Potential Risks and Resistance Levels

On the other hand, Kothari warned that a dip below 22,600 could raise concerns among investors, but the bears would only gain a strong advantage if the index falls below 22,300. For those looking at resistance, immediate pressure is noted at 23,250. A sustained movement above this level could bolster bullish sentiment and strengthen the positive pattern.

"With the uncertainty surrounding the Trump tariff situation starting to fade, we expect the market to stabilize and react more rationally in the near future. Traders should consider starting long positions only if the index surpasses 23,250, but it’s essential to hedge these positions with protective puts due to ongoing global uncertainties," Kothari advised.

Insights on Bank Nifty Index

Regarding the Bank Nifty index, Kothari noted, "The Nifty Bank index has shown remarkable outperformance. After climbing from 48,000 to 52,000, it has entered a consolidation phase that resembles a bullish Flag pattern. This formation will be confirmed if it closes above 52,000. We anticipate an extended rally towards previous all-time highs if this breakout occurs. While the rise may be gradual, it could significantly enhance bullish sentiment in the banking sector. Conversely, falling below 50,700 would invalidate this pattern and may trigger profit-taking in banking stocks."

Top Stock Picks Under ₹200

For investors looking for shares priced under ₹200, Kothari has outlined three recommendations:

• RBL Bank: Consider buying at ₹175, targeting ₹184 and ₹190, with a stop loss at ₹168.
• MRPL: Buy above ₹136, with a target of ₹146 and a stop loss at ₹131.
• Trident: Look to buy on dips around ₹25.50, targeting ₹28 with a stop loss at ₹24.

As the market continues to navigate uncertainties, these insights might provide valuable guidance for traders and investors alike.