The NSE Nifty 50’s immediate support lies at 21,750 and a sharp recovery cannot be ruled out as the stock market’s direction is likely to rely on the development around the tariffs in the short term, according to analysts.

Technically, on the daily chart, the Nifty formed a green candle, indicating buying interest near lower levels and managed to close above the previous support of 21,960 despite high volatility, according to Hrishikesh Yedve, research analyst at Asit C Mehta Investment Interrmediates Ltd.

On the upside, 22,800 will act as an immediate hurdle, while 21,960 will serve as crucial support. Considering the oversold market conditions, a pullback rally cannot be ruled out, Yedve said. “However, for a fresh directional move, the index must decisively cross the 22,800 mark.”

The Nifty may find immediate support at 21,750 level and resistance at 22,300 level after declining to a severe intraday low of up to 5%, according to Aditya Gaggar, director of Progressive Shares Brokers.

“In the short term, the market’s direction is likely to rely on the development around the tariffs, with any positive news potentially triggering a sharp recovery,” Gaggar said.

He added that continued negative sentiment could push the market to lower levels.

The Bank Nifty may find upside resistance at 50,650–50,750 zone. The index defended the 50-day exponential moving average at around 49,500 on a technical level, according to Yedve.

“On the upside, the 50,650–50,750 zone will act as a key resistance area. A sustained move above 50,750 will be required to trigger a fresh rally in the index,” he added.

Market Recap

The benchmark equity indices hit a 10-month low and ended with losses on Monday, extending declines for the third straight session. This comes after the Asian markets plunged most in 14 years on Monday, following the Wall Street’s decline.

The NSE Nifty 50 ended 742.85 points or 3.24% lower at 22,161.60, while the BSE Sensex closed 2,226.79 points or 2.95% down at 73,137.90.

Intraday, Nifty fell as much as 5.07% to 21,743.65 and Sensex was down 3,939.68 points to 71,425.01. Despite this decline, India managed to emerge as the second-best performing market in Asia for the day.

F&O Cues

  • Nifty April Futures down by 2.78% to 22,263 at a premium of 102 points.

  • Nifty April futures open interest up by 1.62%.

  • Nifty Options April 9 Expiry: Maximum call open interest at 25,400 and maximum put open interest at 20,650.

  • Securities in ban period: Birla Soft, Hindustan Copper, Manappuram Finance.

FII/DII

Foreign portfolio investors continued selling stocks for the sixth session in a row on Monday, net offloading around Rs 9,040 crore worth of shares, based on provisional data from the National Stock Exchange. This marks the largest sell-off by FPIs since Feb. 28.

Domestic institutional investors turned net buyers after a selling session as they mopped up equities worth Rs 12,122.5 crore. This indicates the largest buying by domestic investors since Feb. 28.

Global Cues

Asian markets faced heightened volatility Tuesday on concerns that President Donald Trump’s trade war is risking global economic growth. US equity-index futures rose in early trading.

Amid global uncertainties peaking to Covid levels, Asian markets witnessed heightened volatility on Tuesday but ended on a positive note. The Topix index snapped a three-day sell-off to grow 6.44%. The Nikkei 225 similarly advanced to 6.16%, marking the highest intraday rise since August 2024.

Chinese stocks experienced a sharp downturn on Monday, while government bond yields approached record lows as investors grappled with the escalating trade dispute between China and the United States. Beijing’s retaliatory measures against Washington’s tariffs have forced the market to confront the increasing likelihood of a prolonged trade conflict.

The impact was felt globally, with the S&P 500 initially nearing bear market territory before a dramatic intraday recovery. This reversal marked the index’s largest since the volatile trading conditions of 2020.

Major Stocks In The News

  • Bharat Electronics: The company received an order worth Rs 2,210 crore for electronic warfares from the Indian Air Force. The aerospace firm received orders worth Rs 2,803 crore so far in financial year 2026.

  • Mahindra & Mahindra: The firm reported total production at 88,701 units against 71,814 units. The total sales at 79,751 units versus 66,840 units. It also incorporated Mahindra Advanced Technologies as a wholly owned subsidiary.

  • Titan: The company reported in its fourth quarter business update, reporting a year-on-year growth of 22% in CaratLane. The standalone business of the company saw an uptick of 25% compared to last year.

Currency Update

The Indian rupee closed at the lowest level in two weeks against the US dollar on Monday, snapping its brief rebound last week as global trade tensions and risk-off sentiment deepened across markets.

The domestic currency ended 60 paise lower at 85.84 against the greenback. The unit had opened at 85.75, marking its biggest single-day drop in six weeks. It had closed at 85.24 on Friday.

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