Market Overview: On April 1, the Indian benchmark indices extended their losses for the second consecutive session. The Sensex plunged by 1,390.41 points, or 1.80%, closing at 76,024.51, while the Nifty slipped by 353.65 points, or 1.50%, to settle at 23,165.70. The market initially opened on a weak note but briefly attempted a recovery before succumbing to selling pressure. By the end of the session, both indices closed near their intraday lows.
Technical Analysis:
A long bearish candle with an upper shadow formed on the daily chart, indicating selling pressure near the 23,600 resistance level.
The higher tops and bottoms structure remains intact, suggesting the possibility of a higher bottom formation, though confirmation is needed.
Nifty found support near the 23,000 level, a crucial threshold that aligns with the 50-day Exponential Moving Average (50EMA).
Immediate resistance is positioned at 23,400, while a breakout above 23,250 could reignite bullish momentum.
A decisive break below 23,115 could trigger a deeper correction.
Sectoral Performance:
The broader market indices, BSE Midcap and Smallcap, showed relative resilience, with the Midcap index declining 1% and the Smallcap index ending flat.
The IT, realty, and consumer durables sectors suffered the most, shedding 2-3% each.
Media, telecom, and oil & gas sectors emerged as exceptions, with gains of 2% and 0.6% respectively.
Realty stocks declined following Maharashtra’s upward revision of ready reckoner rates.
Market Sentiment & Key Factors:
Investor sentiment was weighed down by global uncertainty ahead of the U.S. reciprocal tariff announcement on April 2, expected to impact global trade dynamics.
Profit-booking after recent gains contributed to the market’s decline.
The IT sector was among the hardest hit due to its exposure to U.S. trade policies.
Rising oil prices further dampened market sentiment.
Despite short-term volatility, domestic factors such as earnings growth recovery, potential RBI rate cuts, and valuation moderation may provide future support.
Top Gainers & Losers:
Major Gainers: IndusInd Bank, Trent, Bajaj Auto, Jio Financial, HDFC Life.
Major Losers: HCL Technologies, Bajaj Finserv, HDFC Bank, Shriram Finance, Bharat Electronics.
Outlook & Strategy:
While the Nifty’s breach of the 23,400 moving average support raises concerns, the 23,000 level remains a crucial support zone.
If the index holds above this level, a short-term rebound is possible.
Given mixed signals, traders are advised to adopt a cautious, stock-specific approach while monitoring global cues.
A breakdown below 23,115 could intensify selling pressure, while an upside breakout above 23,250 may restore bullish sentiment.
In conclusion, market participants should remain vigilant amid ongoing global economic uncertainties and sector-specific developments. A careful approach with selective stock picking and risk management is advisable in the near term.