The Indian stock market fell sharply on Thursday as investor sentiment weakened after the United States’ additional 25% tariffs on Indian imports came into effect today, raising duties to 50% on several categories including textiles and apparel.
The BSE Sensex dropped nearly 700 points, or 0.85%, to an intraday low of 80,093.52, while the NSE Nifty 50 slipped 205 points, or 0.82%, to a low of 24,507.20. The Nifty broke its initial support at 24,600 before bouncing back from the next support zone around the 24,500 mark.
Stock market outlook and technical view
Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, said the Nifty 50 continues to trade weak on the 30-minute chart, moving within a falling channel and facing stiff resistance at 24,650 – 24,700. On the downside, supports are placed at 24,470, 24,380 and 24,150.
“As long as the index remains below 24,700, the bias stays bearish, with traders expected to sell on rises, while a sustained move above 24,720 would be the first sign of reversal, potentially opening the path toward 24,850 – 25,000,” he said.
Riyank Arora, Technical Analyst at Mehta Equities Ltd, said the Nifty 50 is holding above its key support at 24,500. “On the upside, immediate resistance is seen near 24,700; a breakout above this can open the way towards 25,000. On the downside, a breach below 24,500 may drag the Nifty 50 index lower towards 24,300. Traders should watch these levels closely for directional cues,” he noted.
According to brokerage firm Axis Securities, the short-term trend remains weak and the trend-deciding level for the day is 24,774.
“If Nifty 50 trades above this level, it may further rally up to 24,858 – 25,004 – 25,088. However, if it trades below 24,774 levels, we may witness profit booking in the market, and the index may correct up to 24,628 – 24,544 – 24,398 levels,” Axis Securities said.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, echoed the cautious view, adding that the trend is “negative,” with immediate support at 24,500 and a further downside target at 24,350 if that level is breached. Resistance, he said, is placed at 24,700.
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