Nifty Levels 24,000 - 24,500? Ace Investors Jatin Gedia Decodes

The Indian stock market encountered a tumultuous start on April 3rd as global uncertainties, exacerbated by US President Donald Trump 's proposed 26% tariff on Indian imports, sent ripples across financial indices.

Despite cautious opening sentiments, the market displayed resilience throughout the trading day, reflecting mixed investor sentiments amidst escalating trade tensions.

Nifty's Resilience Amidst Challenges
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, outlined crucial support and resistance levels for the Nifty amidst prevailing uncertainties.

"The market remains resilient despite global headwinds," Gedia remarked. He identified key support zones between 23,100 to 22,900, emphasizing the significance of these levels amidst ongoing volatility. On the upside, resistance levels were noted at 23,600 to 23,800, marking critical thresholds for potential market recovery.

Sectoral Impact: IT Stocks Under Pressure
The IT sector bore the brunt of the tariff announcement, experiencing significant selling pressure in recent months. Gedia highlighted, "Nifty IT faces crucial support at 34,000 to 33,800, with resistance at 35,200." He suggested that recent declines may moderate as the sector approaches critical support levels, signalling a potential reversal if key resistance barriers are breached.

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Pharma Sector Finds Favorable Ground
Conversely, the pharma sector witnessed a positive response, buoyed by its exclusion from the tariff proposal. "Nifty Pharma saw profit booking post a gap-up opening, consolidating around 22,000," noted Gedia. He expressed optimism for the sector's upward trajectory, citing potential consolidation before resuming its upward momentum. Preferred picks within the sector included Loras Labs, Biocon, Lupin, and Sun Pharma, reflecting market confidence in these entities.
 

Long-Term Outlook: Stability Amidst Volatility
Looking ahead, Gedia projected a stable outlook for the Nifty index, suggesting a medium-term bottom around 22,000 despite potential corrections. "We believe 24,000 to 24,500 presents medium-term hurdles," he forecasted, indicating a consolidation phase over the next three to six months amidst ongoing global economic dynamics.