Ahead of US President Donald Trump’s announcement of reciprocal tariffs, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to open flat on Wednesday, following conflicting signals from their international counterparts.
The Indian benchmark index has a flat start, according to Gift Nifty’s trends. The Gift Nifty was down around 4 points from the previous closing of the Nifty futures, trading at a level of 23,327.
The benchmark indices both fell more than 1.5% on Tuesday as the domestic equity market plummeted.
The Nifty 50 closed 353.65 points, or 1.50%, lower at 23,165.70, while the Sensex broke 1,390.41 points, or 1.80%, to conclude at 76,024.51.
Also Read : A 1,200-point fall in the Sensex. What’s causing the chaos in the stock market?
What to anticipate from today’s Sensex, Nifty 50, and Bank Nifty is as follows:
Sensex Forecast :
With a correction continuation pattern on intraday charts and a lengthy bearish candle on daily charts, the Sensex fell 1,390 points to settle at 76,025 on Tuesday, suggesting additional weakness from the current levels.
75,800 would be the main support zone for day traders. The Sensex may drop back to 76,500 to 76,650 if it is able to trade above this level. Conversely, a 75,800 dismissal might increase the selling pressure. The Sensex may retest the 50-day SMA (Simple Moving Average) or 75,500–75,300 levels if this level is broken, according to Shrikant Chouhan, Head of Equity Research at Kotak Securities.
He went on to say that level-based trading would be the best approach for day traders because of the current unpredictable market condition.
Forecast for the Nifty 50 :
On April 1,the Nifty 50 saw severe weakness and ended the day 353 points lower.
On the daily chart, a lengthy bear candle with a long upper shadow formed. From a technical perspective, this market movement suggests that selling pressure is starting to emerge from the overhead resistance of about 23,600 levels. The recent downward correction may be viewed as a higher bottom creation process, and the daily chart still shows the positive chart pattern of higher peaks and bottoms. Nagaraj Shetti,Senior Technical Research Analyst at HDFC Securities,stated that confirmation of the higher bottom formation is necessary.
He believes that following a previous strong upswing,the market’s current dip appears to be a healthy correction.
The Nifty 50 might exhibit another upward bounce from the upper lows after finding support at levels around 23,000. At 23,400 levels,there is immediate resistance,Shetti stated.
On the daily chart,the Nifty 50 index created a bearish candle with a lengthy upper wick,signaling significant selling pressure at higher levels,according to Om Mehra,Technical Analyst at SAMCO Securities.
The Nifty 50 is still trading above the 50 and 100 EMAs,suggesting that the overall bullish trend is still in place even though it has fallen below the 9-EMA (Exponential Moving Average). The daily chart continues to support the general uptrend with a higher high and higher low structure,even though the hourly chart indicates a short-term downturn,Mehra said.
He claims that 23,000 is the immediate support,and the rising trendline at 22,850 is the next significant support. Around 23,450 is where the upward resistance is located.
According to VLA Ambala,co-founder of Stock Market Today,the Nifty 50 index’s main resistance zone is still between 23,400 and 23,800,where investors can profit from using the sales-on-rise approach.
Since market activity is anticipated to slow down in comparison to the previous five years, I would advise investors with short-term objectives to modify their outlook. For astute investors,now may be a good time to amass a variety of non-overlapping stocks from different industries. Technically,the Nifty 50 can encounter resistance close to 23,250 and 23,410 and find support between 22,900 and 22,810,according to Ambala.
Bank Nifty Forecast :
The Bank Nifty formed a bearish candle on the daily chart on Tuesday, closing 1.43% lower at 50,827.50.
The Bank Nifty index is still on the edge of breaking through its 9-EMA, but it is still above the 50- and 100-EMAs, suggesting that the overall trend is still somewhat positive. Although it is still hovering close to the 60-point threshold, the daily RSI has become slightly skewed to the downward, indicating a slowdown in momentum without a full collapse. According to Om Mehra, Nifty Bank has fallen below the 51,000 mark, which is the 23.6% Fibonacci retracement level.
He believes that the 38.2% retracement level,or about 50,390,is the next significant support level for the Bank Nifty. Resistance is anticipated close to 51,400 on the upswing. The index may fluctuate with larger swings as uncertainty looms due to a significant tariff event that is imminent.
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