Among the sectors, the Realty Index was the top loser
Shrikant Chouhan,
Head, Equity Research,
Kotak Securities
Mumbai, April 1, 2025: Today, the benchmark indices corrected sharply, with the Nifty ends 354 points lower while the Sensex was down by 1390 points. Among the sectors, the Realty Index was the top losers, shed over 3 percent. Meanwhile, despite weak market sentiment, the Media Index gained 2 percent.
Technically, after a weak open, the market bounced back sharply; however, due to consistent selling pressure at higher levels, it again corrected sharply again. A long bearish candle on daily charts, combined with a correction continuation formation on intraday charts, indicates further weakness from the current levels.
For day traders, 23,100/75800 would be the key support zone. If the market manages to trade above this level, we could expect a pullback rally to 23,300-23,350/76500-76650. On the flip side, a dismissal of 23,100/75800 could accelerate the selling pressure. If this level is breached, the Nifty could retest the levels of 50 day SMA (Simple Moving Average) or 23,000-22,950. For Sensex 75500-75300
Given the current market texture is volatile, level-based trading would be the ideal strategy for day traders.
Satish Chandra Aluri, Lemonn Markets Desk adds: Benchmark indices started the new fiscal FY26 on a sour note after ending sharply lower on Tuesday ahead of the Trump’s tariff announcement. Broader Mid and Small caps also posted losses but fared relatively better.
Today’s session of losses is also partly catching up to the global losses on Friday/Monday as sentiment took a hit ahead of Trump’s reciprocal tariffs. US indices ended March with their worst quarterly performance since 2022 while Europe and Asian markets continued to reel under 25% auto tariffs as well as upcoming reciprocal levies. Domestic cues also came in weak as banking system loan growth continued to moderate in Feb, due to drop in personal and credit card loans, prompting worries over loan growth trends and spillover impact on consumption and domestic growth. Financials, index heavyweight sector, is down 2% while US worries weighed on IT (down 2.4%). It was a broad-based sell off across the sectors with Realty down the most while Media outperformed with gain of 2.1%. No specific factors to highlight for Realty weakness except that overall sentiment has been weak and recent underwhelming bank loan data might have weighed on the sentiment more. However, upcoming RBI meeting where a rate cut is widely expected can help the sector as housing gets a boost with lower rates.
Technically, Nifty 50 had a weak closing below 23200 level indicating large selling pressure. Expect 23000 to act as strong immediate support while 23400-23500 may now act as resistance on upside. Bank Nifty also posted sharp losses slipping below 51000 level. Expect 50500 as strong support zone on the downside, while 51000 will be immediate resistance.
