Stock Market: Nifty Stares at Abyss as Trump Tariffs Tank Bourses

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A proposed 500% US tariff on BRICS trade with Russia sparks brutal selloff in Sensex, Nifty and Bank Nifty, shattering hopes of a pre-Budget rally.

By S JHA

Mumbai, January 9, 2026 — When chartists were indicating new peaks for the Nifty, a gust of negative cue emanating from the US sent the bourses down the hills. A bill threatening 500 percent tariffs on BRICS nations, including India, for trading with Russia proved to be a monster for the bulls on the street.

Sensex, Nifty and Bank Nifty went into brutal selloff. Stocks which had been in momentum were dumped. Stocks with export lineages faced the carnage. Traders shorted the market. Bulls faced wrath of betting on optimism.

Chartists now predict that Nifty must defend the December low. Else, the pain will be more acute. In times when traders wish for a pre-budget rally, the street is now under a pall of gloom. Pessimism over India-US trade tension is now the overwhelming sentiment.

“Index has seen a bearish breakdown from the rising trendline connecting the higher bottoms of November and December, along with a close below the 50-DEMA, which had acted as a strong support over the past couple of months,” said Angel One in a note shared with clients.

Th brokerage firm stated that “the coming session will be crucial, as sustained trading below the 25900 level could open the door for further downside in the week ahead.”

“The next key support is placed around 25700, which marks the December swing low and coincides with the 89-DEMA, followed by 25500, a key retracement level,” added the Delhi-based brokerage firm.

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