Nifty Structure Shatters on Trump Tariff Trail with 23.7k Key Level

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Nifty Suffers Sharpest Drop Since February; Critical Support Levels Under Pressure

By S Jha

New Delhi, April 4: Indian equities witnessed a broad-based selloff on Friday, with the Nifty 50 plunging 345 points (1.49%) to close at 22,900, marking its steepest single-day fall in over a month and an 11-session low.

Mounting global concerns — notably sparked by US President Donald Trump’s announcement of new “Liberation Day” tariffs — sent shockwaves through global markets, dragging down Indian indices along with their global peers.

Angel Broking in a post-market not to clients said: “The Nifty is now teetering near a key technical juncture, closing just above the 50% Fibonacci retracement of the recent rally. The 61.8% retracement level at 22,700, also the breakout zone from mid-March that triggered a 1,000-point surge, now serves as a crucial support.”

A breach of this level, analysts caution, could unleash an impulsive downside move. “On the upside, resistance has shifted to 23,100, which previously served as support near the 50-day exponential moving average (DEMA),” added Angel Broking in its note.

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It also stated that the “next key hurdle lies around 23,350, where the 89 EMA is positioned. For bullish momentum to return, a decisive breakout above these levels will be essential.”

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Market sentiment soured rapidly:

Only 9 of the Nifty 50 stocks and 40 out of the Nifty 500 ended in the green.
Major sectoral indices were deep in the red:
- Metals plummeted 6.56%
- Pharma declined 4.03%
- Realty, Energy, and Oil & Gas all dropped more than 3.5%

Amid the carnage, a few defensive sectors offered a sliver of stability, with Financials, FMCG, and IT ending flat to mildly positive.

Angel Broking said: “Technically, the Nifty now trades below all major EMAs—20, 30, 50, 100, and 200—indicating rising bearish pressure.” Only 27% of Nifty 500 stocks and 47% of Nifty 50 stocks remain above their 20-day EMA, underscoring weak short-term momentum, it added.

While the broader market suffered, the Bank Nifty showed notable relative strength, ending the week just 0.12% lower compared to the Nifty’s 2.62% weekly loss. “A breakout above the 51,850–52,050 zone could act as a fresh trigger for banking stocks, potentially leading the next leg of outperformance—if global sentiment stabilizes,” said Angel Broking in its note.

As the Nifty tests the 22,900 zone, market watchers are closely eyeing the 22,700 level, added Angel Broking. “A decisive breakdown could accelerate the decline, while a bounce and reclaim of 23,100–23,350 may revive short-term bullish hopes,” it added. Until then, volatility and caution are likely to dominate sentiment.

(Disclaimer This article makes no recommendation for any kind of trades in the stock market)

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