Stock Market today: Key levels to watch for Nifty & Nifty Bank after Trump tariffs

Indian stock markets are likely to open sharply lower on Thursday following the higher-than-anticipated reciprocal tariffs from the United State on 'Liberation Day' on April 2. Dalal Street is bracing for a shivering gap-down opening following a meltdown in the Asian stocks at the opening tick. Export led sectors like IT, auto and pharma will be buzzing today

Nifty futures on the NSE International Exchange traded 251.95 points or 1.08 per cent down, at 23,186, hinting at a negative start for the domestic market on Thursday. Market sentiments remain jittered across the Asia-Pacific region after US President Donald Trump imposed higher-than-an-anticipated tariffs.
 

Global stock markets are plunging, and Dalal Street’s pain may just be beginning, with Nifty’s key support at 22701. Adding to the concerns, US President Donald Trump announced reciprocal tariffs, said Prashanth Tapse, Senior VP (Research), Mehta Equities. 
 

"For trading, Nifty (23,332) is a sell between 23,300-23,350, targeting 23,136 and 23,000, with aggressive targets at 22,300-22,700, while Bank Nifty is a sell at current levels, targeting 51,000 and 50,407, with aggressive downside at 49,383-49,500," he said.

Asian stocks bled in the early trade after the hefty reciprocal tariffs, before making a partial recovery. Leading the regional pack, Japan's Nikkei crashed nearly 3 per cent, while Australia's ASX200 was down 1.25 per cent. Hong Kong's Hang Seng was seen falling 2 per cent, while South Korean Kospi tumbled more than a per cent in the early hours on Thursday.

On the other hand, US stock indices finished higher after a choppy trading session on Wednesday but the futures reversed the gains and signalled sharp cuts. This suggested investors expect deep losses when Wall Street opens on Thursday. Dow Jones rose 0.56 per cent, while S&P 500 index was up 0.67 per cent and Nasdaq posted gains of 0.87 per cent for the day.

The dollar slid broadly, while the euro was steady after the US announced more aggressive tariffs, jolting the markets. The Indian rupee declined in the non-deliverable forward (NDF) market on Thursday after the US President Donald Trump slapped a 26 per cent tariff on imports from India.

Oil prices dropped $2 on Thursday after US President Donald Trump announced reciprocal tariffs on trading partners, stoking concerns that a global trade war may dampen demand for crude. Brent futures fell $1.97, or 2.63 per cent, to $72.98 a barrel. US West Texas Intermediate crude futures were down $1.98, or 2.76 per cent, to $69.73.

Markets will react to the announcement of reciprocal tariffs and the initial response from global markets, which could influence sentiment. The scheduled weekly expiry may add to the volatility, said Ajit Mishra – SVP, Research at Religare Broking. "We recommend a cautious stance and favor a hedged approach until there is greater clarity on the index’s next directional move."

Nifty50: Tech view

The market’s reaction post the tariff announcement will be pivotal. A sustained follow-up buying in the coming session could reinforce bullish momentum, potentially driving Nifty higher towards 23,600 and 23,800 in the near term, said Rajesh Bhosale, Equity Technical Analyst, Angel One. "A break below 23,100 might trigger weakness, with the next support near 22,900. Given the weekly expiry, traders should closely monitor global cues and the key levels mentioned to formulate their strategies," he said.

Shrikant Chouhan, Head Equity Research at Kotak Securities said that as long as the market is trading above 23,150, the pullback formation is likely to continue. On the upside, it could move up to 23,500. A dismissal of 23,500 could push the market towards 23,650. If the market falls below 23,150, selling pressure may intensify, and it could slip to the 23,000-22,950 range, he said.

Nifty Bank view

Nifty Bank has retraced just 30 per cent of the preceding 9 sessions rally (47,703-52,063). A shallow retracement and a higher base above the recent breakout area (50,500-50,000) signals overall strength, said Bajaj Broking. The current breather should be used as a buying opportunity in quality stocks in a staggered manner, he said.

"Index has key supports placed at 50,500-50,000 levels, we expect it to hold above the same and gradually head higher towards 52,050 and then towards 53,000 levels in the coming weeks being the measuring implication of the recent range breakout," it added.