Nifty ends 90 points lower while the Sensex was down by 320 points
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, April 3, 2025: Today, the benchmark indices witnessed some recovery from the lower levels, with the Nifty ends 90 points lower while the Sensex was down by 320 points. Among sectors, the IT index corrected sharply, shed over 4 percent, whereas the Pharma index was the top gainer, rallied over 2 percent.
Technically, after a gap down opening, the market found support near 23150/75800 and reversed. However, it failed to surpass the 23350/77000 resistance zone, which is largely negative. We believe that the market is currently experiencing non-directional activity. On the downside, it is consistently finding support near 23150/75800, while profit booking is occurring near the 23350/77000 zone. For short-term traders, 23350/77000 is now the key level to watch. If the index moves above this level, the bounce back could continue up to 23500-23600/77500-77800. Conversely, if it falls below 23150/75800, selling pressure could intensify, potentially leading the market to retest levels around 23000-22950/75500-75300.
Given the current market conditions, which are non-directional, level-based trading would be the ideal strategy for day traders.
Satish Chandra Aluri, Lemonn Markets Desk, adds: Benchmark indices closed lower on Thursday but fared better than expected after Trump’s tariff announcement. Broader Mid and Small caps even posted gains for the day.
Markets opened lower in the morning, following sharp losses in global markets after Trump’s tariffs finally arrived stoking recession fears. However, perceived optimism on India, despite 26% reciprocal tariff, that other Asian economies like China and Vietnam got hit even worse thereby not impacting the Indian exports competitiveness along with cautious hope for eventual relaxation as govt continues talks for trade deal with US led to gradual rebound throughout the day. Also, the surprise exemption of pharma, which is an important export industry led to sharp rally in pharma/healthcare stocks cushioning the fall in the market. Overall, it appears that markets are for now not expecting the absolute worst for our economy although the second order impact of eventual recession in US would be hard to ignore, if it materializes. IT is the worst hit sector on growing fears of US recession while auto, metal and Oil & gas also ended lower on tariff related worries. Domestic focused Banks, FMCG and Public sector units posted gains behind Pharma, the best performing sector.
Technically, Nifty 50 closed at 23250 with 23000-23100 zone expected to remain strong immediate support while 23300-23400 may act as resistance on upside. Bank Nifty posted strong gains closing near 51600 level. Expect 51000 to act as strong support zone on the downside, while 51800 will be immediate resistance.
