Share Market Prediction: Mariana Trench For Indian Markets Next? How Deep Can It Fall? Donald Trump Spooks D-Street

Share Market Prediction Tomorrow, April 2: The Indian stock markets experienced a turbulent day, with both the BSE Sensex and NSE Nifty benchmarks tumbling over 1.50%, marking the second consecutive session of losses. This volatility was largely due to jitters surrounding the impending US tariffs scheduled for April 2, which have created a ripple effect across global markets.

At the close of trading, the BSE Sensex plummeted by 1,390.41 points, or 1.80%, settling at 76,000 levels. Meanwhile, the NSE Nifty 50 index declined by 353.65 points, or 1.50%, ending at 23,165.70. The massive sell-off in IT and other blue-chip stocks resulted in a staggering loss of over Rs 4 lakh crore for investors.

Sectoral and Stock Performance

Among the sectoral indices, IT, realty, and consumer durables noticed significant declines of 2-3%, while media, oil & gas, and telecom managed to stay in the green. On the NSE, IndusInd Bank, Trent, Bajaj Auto, Jio Financial, and HDFC Life emerged as the top gainers. On the other hand, HCL Technologies, Bajaj Finserv, HDFC Bank, Shriram Finance, and Bharat Electronics were the major laggards.

The India VIX, a volatility index based on Nifty Index Option prices, surged by 8.37% to 13.78, reflecting heightened market nervousness.

Global Market Trends

While Indian markets faced a downturn, Asian shares showed mixed results. Tokyo's Nikkei 225 remained stable, Hong Kong's Hang Seng rose by 0.2%, and the Shanghai Composite index gained 0.4%. South Korea's Kospi and Taiwan's Taiex saw significant jumps of 1.6% and 2.8%, respectively. In contrast, the Sensex in India recorded a 0.2% loss.

In the US, markets exhibited sharp swings due to uncertainty over President Donald Trump's upcoming tariffs. The S&P 500 rose by 0.6%, while the Dow Jones Industrial Average climbed 1%. However, the Nasdaq composite slipped by 0.1%, dragged down by declines in Tesla, Nvidia, and other Big Tech stocks.

How Stock Market Will Perform Tomorrow, April 02, 2025

The extended weekend brought weak global market developments, which impacted our markets as the Nifty opened with a significant gap of over 150 points. Although the index staged a complete recovery within the first half-hour, it soon faced another wave of selling, breaking the morning lows and extending losses by 1.5% to close just above 23150, said an analyst.

"After a strong March, the new financial year has begun on a disappointing note. Despite being a truncated week, market action remains eventful, particularly with global trade tariff developments. India VIX surged by nearly 10%, indicating heightened volatility ahead. With today’s decline, Nifty has retraced 38.2% of its recent rally and is now testing a crucial support zone around 23100, which aligns with the 20 DEMA and 50 DEMA," said Osho Krishan, Senior Analyst Angel One.

"Holding this level will be key; a breach could push prices lower toward the 23000–22900 range. Looking back at March’s bullish candle, we had advocated a buy-on-dip approach, making the mentioned support levels critical. For bullish momentum to regain strength, Nifty needs to close above the 89 DEMA at 23350, followed by a break above today’s high near 23600," he said.

He advised traders to closely monitor these levels and plan their trades accordingly. Given the ongoing geopolitical uncertainties and the likelihood of volatile swings, it is advisable to remain cautious, avoid complacency, and limit overnight exposure.

"On the daily charts, we can observe that the Nifty is now approaching the 23100-support level which coincides with the 40-day exponential moving average and the 50% Fibonacci retracement level. Because of the sharp decline, the structure has become weak and hence we change our outlook on the nifty sideways," said Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan.

"The range of consolidation is likely to be 23000 – 23650. On the upside, 23400 – 23450 shall act as an immediate hurdle from a short-term perspective. Bank Nifty is also approaching the support zone of 50800 – 50650 which coincides with the gap area formed on 24th March 2025. Range of consolidation for bank Nifty is likely to be 50000 – 52000," he added. 

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