Nifty50 Tomorrow Prediction: Breakdown! Bearish Trend in Nifty50 Next Week; Check April 7 Sensex Prediction

Friday saw losses in Indian local benchmark indexes, following the global market meltdown on the announcement of reciprocal tariffs by US President Donald Trump. The NSE Nifty 50 index closed below 23,000, while the BSE benchmark Sensex fell 930.67 points, or 1.22 percent, to 75,364.69.

The Nifty 50 saw a more than 8% decline in Tata Steel, followed by Hindalco, ONGC, Tata Motors, Cipla, L&T, Adani Ports, Sun Pharma, and others on April 4, Friday.

Nifty50 Prediction For Tomorrow, April 7: Bearish Sentiment

On Monday, 7th April, the Nifty daily chart shows a breakdown from consolidation, with a long bearish candle suggesting weak sentiment. The sentiment for Nifty is currently weak, with immediate support identified at 22,800. Curious about the next week's trading outlook? Here is expert analysis of Nifty chart trading views, support, and resistance.

According to the market analysts, the stock market closed substantially lower on Friday due to the turmoil caused by US President Donald Trump's tariff announcements.

Global Impact on Indian Market: Trump's Tariff Woes

Siddhartha Khemka, Head of Research at Wealth Management department in Motilal Oswal Financial Services Ltd. highlighted the influence of recent global developments and domestic factors. Khemka pointed out the global sell-off triggered by the U.S. President Trump's tariff announcements, which have raised concerns about a potential economic slowdown. This has significantly impacted investor sentiment, both globally and in India.

Mr. Khemka said, "Indian equities fell sharply, following a global sell-off sparked by U.S. President Trump's tariff announcements and renewed concerns over economic slowdown. Nifty ended with loss of 346 points at 22,904 (-1.5%), breaking below the 23k mark. Weakness was seen across the board, with heavy losses in Metal, Pharmaceutical and IT stocks. Nifty Metal index plunged 6.5% due to potential disruption of business activities amid global trade war. Pharma index declined by 4% after President Trump hinted at potential sector specific tariffs on pharmaceutical products to be announced soon."

"Nifty IT slumped over 3%, tracking sharp fall in the US Nasdaq Composite Index. Broader market witnessed heavy selling pressure with Nifty Midcap100 and Smallcap100 down 2.8% and 3.5% respectively. Investors will be awaiting US Fed Chair Jerome Powell's speech tonight, for insights into Fed's assessment of the US economy and clues on the monetary policy outlook following the tariff announcements," Motilal Oswal's Wealth Management Research Head, Mr. Khemka said.

Nifty 50 Next Week; April Second Week Prediction

In addition to the global factors, Khemka highlighted the domestic developments that investors should be mindful of. He pointed out that the market will be closely watching the Reserve Bank of India's (RBI) monetary policy decision on April 9.

He said, "Apart from developments on the US tariff front, market focus will be on RBI's monetary policy announcement on 9th April."

Wealth Management Research Head Khemka also pointed out that the upcoming corporate earnings season, starting with TCS results on April 10, will likely influence market movements. He said, "The Q4FY25 corporate earnings beginning with TCS results on 10th April next week. We expect market to remain volatile with sector specific action, tracking RBI's interest rate decision, pre-quarterly business updates/Q4 results and global market cues.

Nifty 50 Tomorrow: Breakdown

Vinod Nair, Head of Research at Geojit Investments Limited, noted that the recent U.S. tariffs, which were higher than expected, have significantly affected global markets, causing a bearish trend. Investors are worried about the potential retaliatory measures from other countries, increasing uncertainty. U.S. bond yields and oil prices are falling, reflecting concerns about a possible economic slowdown and recession risks.

Head of Research at Geojit Investments, Mr Nair said, "The recent implementation of higher-than-anticipated U.S. tariffs has had a significant impact on global markets, triggering a bearish trend as investors assess the broader implications. The likelihood of retaliatory measures against the U.S. has further heightened uncertainty. U.S. bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks."

He further said that on the domestic front, although the direct impact of these tariffs is moderate compared to other major economies, it is still larger than initially anticipated. As the fourth quarter approaches, there is an expectation for a gradual improvement in corporate performance. However, the overall weak market sentiment suggests that the market may continue to consolidate in the near term.

"Domestically, while the direct impact of these tariffs is relatively moderate compared to other major economies, it remains more substantial than initially projected. As Q4 approaches, a sequential improvement in corporate performance is anticipated. However, prevailing weak market sentiment suggests that the phase of consolidation may persist in the near term," Mr. Nair said.

Rupak De, Senior Technical Analyst at LKP Securities explains that the Nifty index has recently broken out of a period of stability, suggesting a downward trend. Initially, the index found some support at the 22,900 level, but the overall market sentiment is weak. If the Nifty falls below 22,900, it could drop further to around 22,676. On the other hand, if the Nifty rises above 23,100, it could signal the start of a strong upward trend.

Mr. Rupak De said, "The Nifty has given a consolidation breakdown on the daily chart, indicating bearishness. Initially, the index found support at the crucial 22,900 level. However, sentiment remains weak, and a further decline from the current level could trigger additional market correction. On the lower end, if Nifty falls below 22,900, it may move toward 22,676. On the higher end, resistance is seen at 23,100. A move above 23,100 would provide a clear signal for a strong uptrend."

Sensex Prediction for April 7: Support and Resistance Levels

For Monday's April 7 trading session, the market analysts have set support at 75,000 and resistance at 75,800. Experts predict that a rebound towards 74,800 might occur if the price drops below 75,000, while a breakout above 75,800 might indicate an upside.

According to market analysts, even though India's tariffs are greater than anticipated, they are still comparatively lower than those imposed on nations that compete with India for exports, such as China, Vietnam, Thailand, Indonesia, and Bangladesh. "We expect that the impact of reciprocal tariffs will be limited," Siddhartha Khemka of Motilal Oswal stated.

Disclaimer: This article is intended for informational purposes only, and should not be considered as any investment advice.