Indian stock market: The Indian stock market closed highly lower last week and broke a two -week winning series, while the global trading tensions escalated after the tariff increases of Donald Trump, as a result of which investors both interior and internationally disturbing investors.
The benchmark indices, Sesex and Nifty 50 were mainly weighed by weak global signals and renewed fears for a trade war. The Nifty 50 finished the week at 22,904.40, while the Sessex closed near its weekly layer at 75,364.69. In the week the BSE Sesex fell 2,050.23 points or 2.64%, and the NSE Nifty fell 614.8 points or 2.61%.
“After a consolidation phase of a week, the Indian stock markets saw a sharp decline, with benchmark indices that slide more than 2.5%, mainly dragged by weak global signals and renewed concern about a trade war,” said Ajit Mishra-SVP, Religare Broking Ltd.
Market front views for the week
Most sectors were hit hard by the decline, with the metal shares taking the largest hit that fell between 7% and 9%. Certain segments such as FMCG, Banking and Financial Services, however, remained relatively stable and helped to dampen the total fall somewhat. The wider market followed a similar pattern, because indices for the middle and small cap between 2% and 2.6% lost.
Investor confidence took a hit after the decision of the United States to impose mutual rates, which caused reason for retaliating actions of other countries and gave rise to concern about a possible global trade war. The sharp decline on the American markets further weakened the expectations of a rebound.
To make matters worse, foreign institutional investors (FIIs), who had temporarily become net buyers, resuming the sale, intensifying the overall bearish sentiment.
Main market factors for next week
The coming week is crucial as various large domestic and global events on the horizon. Rising tariff tensions attract the attention of global investors, who will follow new developments closely.
On the Interior Front, all eyes will be in the Monetary Policy Committee (MPC) that meets the outcome of planned before April 9. This is followed by important macro -economic data releases – the index of industrial production (IIP) and Consumer Price Index (CPI) figures – on 11 April.
As an addition to the momentum of the week, the Q4 win season starts, with the large TCs that report its results on 10 April. “Market focus is gradually shifting to the upcoming operating result.
Can the Indian stock market crash further?
From a technical point of view, the Nifty is broken under all important prize and advancing average support, which points to potential for further disadvantage.
On Nifty’s prospects, Mishra of Religare Broking said: “The immediate support is 22,600, while a decisive infringement could open the door to 22,100. At the top, each recovery will probably be confronted with stiff resistance in the 23,100-23,400 zone.”
He also added to the Bank Nifty Outlook: “It is interesting that the Banking Index shows strength and can continue to surpass. It has immediate support at 50,700, with stronger support of approximately 50,000. If the index breaks 52,800, it can ephruit the road for fresh highlights.”
The divergence between Nifty and the bank index can offer a pillow at an aggressive decline.
How do you trade at the Indian stock market next week?
Mishra also recommends traders to maintain a “Sell on Rise” strategy for the index until a clear reversal or retest of the 22,100 support level takes place.
“As the profit season starts, the stock -specific action is likely to dominate and offer opportunities for both long and short sides.
Banking and financial shares continue to show consistent strength and can remain in favor. In the meantime, traders must navigate with caution through broader market volatility and take into account long positions using index, “he said.
With the prevailing uncertainty, flexibility and sectoral preference are crucial for navigating through the turbulent water in the coming days, Mishra added.
Safeguard: This story is only for educational purposes. The views and recommendations above are those of individual analysts or brokerage companies, not for Mint. We advise investors to check with certified experts before we make investment decisions.
