It’s April 2 and all eyes are on US President Donald Trump’s announcements on reciprocal tariffs. The markets are waiting with bated breath and sentiment is definitely nervous. After the Nifty’s close below 23,500, the key support levels are in focus. According to market experts, the most important support level is placed at 23,000.
The first level of support is at 23,100 if that breaches then selling may accelerate to the 23,000 level. If the markets sustain the first key support and trades above, “we could expect a pullback rally to 23,300-23,350,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty: Will correction continue?
Ajit Mishra, Senior Vice President of Research at Religare Broking, said that the next crucial support lies around 23,100 (20 DEMA), and a breakdown below this level could further dampen sentiment, whereas holding above it may pave the way for a recovery.
The immediate support is placed at 23,000, while the next key support aligns with the rising trendline near 22,850, said Om Mehra, Technical analyst at SAMCO Securities. The resistance on the upside is seen around 23,450.
After Tuesday’s trade, the Nifty index slipped below its range and breached the moving average ribbon support at 23,400, said Mishra of Religare Broking. A long bearish candle on daily charts, combined with a correction continuation formation on intraday charts, indicates further weakness from the current levels, said Chouhan.
On Wednesday, the domestic equity indices slumped as Trump’s tariff sent tremors. The Nifty 50 closed the session 1.5% lower at 23,165.70 while the Sensex plummeted 1,390 points or 1.80% to end the day at 76,024.51.
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On April 2, Trump plans to roll out a set of new reciprocal tariffs which it referred to as ‘Liberation Day’. A day ahead of which markets saw nervous sell-off.
To conclude, Wednesday’s trade is likely to see heightened volatility throughout the day on the back of the Liberation Day event. “With global trade policies in focus, volatility is expected to remain elevated over the next few days,” said Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services.
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