Sensex forecast for tomorrow, April 7: Will the US stock market meltdown have a huge impact? Support and resistance levels.
Sensex forecast for tomorrow, 7 April: It remains to be seen if the US stock market meltdown on Friday evening would have a significant influence on the Indian stock market on Monday or not. In addition, GIFT Nifty, an early predictor of how the Sensex and Nifty are expected to begin trading, indicates a gap-down start.
Sensex forecast for tomorrow, 7 April: Regional benchmark indexes fell on Friday, mirroring global market declines following US President Donald Trump’s proposal of retaliatory tariffs. In response, China put a 34% tariff on US goods, sending the S&P 500 and Dow Jones further down on Friday afternoon.
Following China’s statement, the S&P 500 fell 6%, its worst week since March 2020, while the Dow Jones Industrial Average fell 2,231 points, or 5.5 percent. Nasdaq fell 5.8 percent. Earlier in the day, the BSE benchmark Sensex closed 930.67 points, or 1.22 percent, down at 75,364.69, while the NSE Nifty 50 index fell below 23,000.
It remains to be seen if the US stock market meltdown on Friday evening would have a significant influence on the Indian stock market on Monday or not. Notably, GIFT Nifty, an early indication of how the Sensex and Nifty would trade, forecasts a gap down start, having fallen almost 400 points on Friday.
Sensex Forecast for Tomorrow, 7 April
Market analysts think that, while India’s tariffs are greater than projected, they are still lower than those put on nations such as China, Vietnam, Thailand, Indonesia, and Bangladesh, which compete with India for export share. “All of us anticipate that the influence of reciprocal tariffs will be limited,” said Siddhartha Khemka of Motilal Oswal.
Jigar Patel of Anand Rathi Stock Brokers noted that the D-Street had a volatile day on Friday, with bears dominating and pulling the Sensex down by 1.22 percent. “Technical signals indicate that the market is oversold, which suggesting that it could rebound amidst ongoing volatility within the next few sessions,” the market analyst added.
Sensex Assistance and Resistance for Tomorrow
The market analyst has set resistance at 75,800 for Monday’s trading session, with support around 75,000. According to Patel, a breakout over 75,800 may indicate an upward trend, whilst a loss below 75,000 might initiate a regression toward 74,800.
According to Bajaj Broking, the present pause should be exploited as a staggered buying opportunity in quality companies.
Meanwhile, benchmarks are anticipated to be volatile this week due to concerns about the impact of US retaliatory tariffs and possible announcements of more sector-specific penalties during the week.
The focus will also be on the RBI’s monetary policy decision on April 9 and the Q4 FY25 earnings season, which begins with TCS reports on April 10.
Read More: Jass Insights
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