3 days ago
Indian equities began financial year 2025-26 on a weak note, as frontline indices fell between 1-2%, reflecting anxieties surrounding the economic implications of US President Donald Trump's imminent reciprocal tariffs scheduled for implementation on Wednesday, April 2.
After showing a rangebound action with weak bias on Friday, the Nifty 50 index witnessed sharp weakness today and closed the day lower. After opening with a negative note, the market showed a quick recovery soon after the opening. However, this recovery was not able to maintain its momentum at higher levels, leading to a nosedive of 429 points from the day's high of 23,565 towards 23,136.
The Nifty breached the critical support levels of the 200-day EMA, ultimately closing down by 354 points, or 1.5%, at 23,166.
Benchmark indices underperformed broader markets on the first day of the new fiscal year. All major sectors came under pressure, with realty, IT, and financials among the top losers.
HCL Technologies topped the laggard with shares slumping 4%, followed by Bajaj Finserv and Bharat Electronics. Banking heavyweights saw selling pressure, with ICICI Bank and HDFC Bank down 2-3%.
Nifty 50 constituent Bharat Electronics Ltd. (BEL) shares fell 3% after the state-run company missed its order inflow guidance for financial year 2025. However, its revenue growth for the financial year was higher than what the company had anticipated.
Meanwhile, gold prices hit a new record of $3,120 on Tuesday amid heightened safe-haven demand, while the US dollar index climbed to 103.9 against major currencies.
Despite being a truncated week, market action remains eventful, particularly with global trade tariff developments. The near-term market trajectory hinges on tomorrow's tariff announcement details.
Should Trump unveil milder-than-anticipated tariffs, markets may experience a rebound led by export-oriented sectors including pharmaceuticals and information technology. Conversely, severe tariff impositions could trigger further market deterioration, believe analysts.
Meanwhile, foreign investors remained net sellers in the cash market on Tuesday, while domestic institutional investors were net buyers.
- FII net sold ₹5,901 crore
- DII net bought ₹4,323 crore
What do the Nifty 50 charts indicate?
Nagaraj Shetti of HDFC Securities believes the present weakness in the market seems to be a healthy correction after a recent sharp uptrend. Shetti expects Nifty to find support around 23,000 levels before showing another round of upside bounce from the higher lows. Immediate resistance is placed at 23.400 levels.
LKP Securities' Rupak De said that a decisive breakdown below 23,115 could trigger a deeper correction. On the upside, resistance is observed at 23,250—a breakout above this level could reignite bullish momentum in the market.
"With today's decline, Nifty has retraced 38.2% of its recent rally and is now testing a crucial support zone around 23,100, which aligns with the 20 DEMA and 50 DEMA. Holding this level will be key; a breach could push prices lower toward the 23,000–22,900 range," said Rajesh Bhosale of Angel One.
What do the Nifty Bank charts indicate?
The Nifty Bank ended the session at 50,827.50, down 1.43%, forming a bearish candle on the daily chart.
"The index has slipped below the 23.6% Fibonacci retracement level placed at 51,000. The next key support lies near the 38.2% retracement level, around 50,390. On the upside, resistance is expected near 51,400. With a major tariff event on the horizon, the index may oscillate with wider swings as uncertainty looms," said Om Mehra of SAMCO Securities.
Here are the stocks to watch ahead of Wednesday's trading session:
- Coal India: Raises Prices Of Coking & Non-Coking Coal By Rs 10 per tonne.
- Power Grid: Successful Bidder To Set Up 400 kV Trans Line At Mahan Energen In Madhya Pradesh.
- NMDC: March Sales Up 6%, FY25 sales flat at 44.4 mt YoY.
- JSW Energy: Adds 3.6 GW Capacity In FY25, Surpasses Target Capacity Of 10 GW.
- Hind Copper: MP Unit Sees Highest-Ever Yearly Ore Production.
- Hyundai: March Sales Higher Than Estimates, Led By SUV Segment.
- MOIL: Hikes Prices Of Manganese Ore By 3% & 0.5% For Different Grades.
- CSB Bank: Q4 Deposits & Gross Advances Rise More Than 10% QoQ.
- VMart: Q4 Revenue Up 17%, Same-store-sale Growth At 8% YoY.
- SJVN: Completes Trial Run Of 242 MW Of The 1,000 MW Bikaner Solar Project.
- Zaggle: Agreement With Truecaller For Employee Expense Management and Benefits Svcs.
- Ganesh Benzoplast: Bags An Order Worth Rs 169 crore From JSW Jaigarh Port.
- Lloyds Metals: FY25 Sponge Iron Production Up 18% YoY.
- Piramal Pharma: Commences Commercial Production Of Sevoflurane At Telangana Unit.
- Tata Motors: March Sales Higher Than Estimates But Underperformance Continues.
- Hindalco: ‘India Biz Capex Increased To $5 Bn From $1 Bn, Novelis Guidance Maintained.
- SBI Card: Total Feb Spends Down 9.7%, Avg Spends Per Card Down 10.5% MoM.
- MCX: Q4 Transaction Rev Down 4% QoQ, Average Daily Transaction Rev Below MS Est.
- Voltas: Rakesh Rampratap Tripathi, Head Commercial Air Conditioning Resigns.
- Swiggy: Gets Tax Demand Of Rs 158 Crore For The Period April 2021 To March 2022.
- RITES: Mutually Agree To Terminates Major Agreement Secured From UP State Bridge Corporation.
- Godawari Power: Suspends Mining Operations At Company’s Boria Tibu Iron Ore Mines, Chhattisgarh.
