Can Indian inventory market crash additional? Right here’s the way to commerce subsequent week

Indian inventory market: The Indian inventory market closed sharply decrease final week, breaking a two-week profitable streak, as world commerce tensions escalated following Donald Trump’s tariff will increase, unsettling traders each domestically and internationally.

The benchmark indices, Sensex and Nifty 50, have been weighed down primarily by weak world cues and renewed fears of a commerce warfare. The Nifty 50 ended the week at 22,904.40, whereas the Sensex closed close to its weekly low at 75,364.69. Over the week, the BSE Sensex plunged 2,050.23 factors or 2.64%, and the NSE Nifty dropped 614.8 factors or 2.61%.

“After a week-long consolidation section, Indian fairness markets noticed a pointy downturn, with benchmark indices slipping over 2.5%, dragged primarily by weak world cues and renewed considerations over a commerce warfare,” mentioned Ajit Mishra – SVP, Analysis, Religare Broking Ltd., in a weekly be aware.

Market outlook for the week

Most sectors have been hit arduous by the decline, with IT and steel shares taking the most important hit, dropping between 7% and 9%. Nevertheless, sure segments like FMCG, banking, and monetary providers remained comparatively steady, serving to to considerably cushion the general fall. The broader market adopted an analogous sample, as mid- and small-cap indices misplaced between 2% and a pair of.6%.

Investor confidence took a success following the US’ resolution to impose reciprocal tariffs, which prompted retaliatory actions from different international locations and sparked considerations over a possible world commerce warfare. The sharp downturn in U.S. markets additional weakened expectations of a rebound.

To make issues worse, international institutional traders (FIIs), who had momentarily turned web consumers, resumed promoting, intensifying the general bearish sentiment.

Key market drivers for subsequent week

The upcoming week is essential as a number of main home and world occasions on the horizon. Rising tariff tensions are drawing the eye of worldwide traders, who shall be carefully monitoring any new developments.

On the home entrance, all eyes shall be on the Financial Coverage Committee (MPC) assembly final result scheduled for April 9. This shall be adopted by key macroeconomic knowledge releases—the Index of Industrial Manufacturing (IIP) and Client Value Index (CPI) figures—on April 11.

Including to the week’s momentum, the This fall earnings season begins, with IT main TCS set to report its outcomes on April 10. “Market focus is progressively shifting towards the upcoming company earnings season. The preliminary outlook stays subdued, with the danger of additional downward revisions to earnings development, largely resulting from tepid demand and continued margin pressures,” mentioned Vinod Nair of Geojit Investments Ltd.

Can Indian inventory market crash additional?

Technically, the Nifty has damaged beneath all main value and transferring common helps, indicating potential for additional draw back.

On the outlook of Nifty, Mishra of Religare Broking mentioned, “The instant assist lies at 22,600, whereas a decisive breach may open the door in direction of 22,100. On the upside, any restoration is prone to face stiff resistance within the 23,100–23,400 zone.”

Additional, on the Financial institution Nifty outlook, he added, “Curiously, the banking index is displaying power and will proceed to outperform. It has instant assist at 50,700, with stronger assist round 50,000. If the index breaches 52,800, it could pave the best way for contemporary highs.”

The divergence between Nifty and the banking index may present some cushion towards an aggressive decline.

Easy methods to commerce in Indian inventory market subsequent week?

Mishra additional suggest merchants to take care of a “promote on rise” technique for the index till a transparent reversal or a retest of the 22,100 assist stage happens.

“As earnings season begins, stock-specific motion is prone to dominate, presenting alternatives on each the lengthy and brief sides.

Banking and monetary shares proceed to show constant power and will stay in favor. In the meantime, merchants ought to navigate the broader market volatility with warning, and take into account hedging lengthy positions utilizing index places,” he mentioned.

With uncertainty prevailing, agility and sectoral desire shall be key to navigating the uneven waters within the days forward, Mishra added.

Disclaimer: This story is for instructional functions solely. The views and suggestions above are these of particular person analysts or broking corporations, not Mint. We advise traders to verify with licensed specialists earlier than making any funding choices.