Nifty predictions for April 7: A breakdown! Long bear candle on the chart

Of the 4,076 shares traded on the BSE, 1,029 climbed and 2923 dropped. The Nifty Metal Index fell 6.6% on Friday, while the Pharma and IT indexes fell almost 4% a piece. The Nifty Realty Index fell 3.6%, while the oil and gas, healthcare, consumer durables, and auto indexes fell 2-4%. Foreign portfolio investors (FPIs) sold shares worth Rs 3,484 crore on Friday. Their domestic competitors also sold shares totaling Rs 1,720 crore. In April, international investors sold stocks worth more than Rs 14,500 crore.

Market analysts say the stock market finished substantially down owing to the turbulence caused by US President Donald Trump’s tariff plans. According to Vaibhav Vidwani, Research Analyst at Bonanza, the market’s selling was fueled mostly by worries of a global trade war and recession. “Looking ahead, market projections are cautious, due to ongoing global uncertainties and potential reprisals from trading partners,” according to him. Below 22900, the Nifty index may fall to 22676. On the higher end, Nifty resistance is around 23100. “A move above 23100 will be a clear signal for a strong uptrend,” the market analyst stated.

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, a lengthy bear candle appeared on the Nifty’s daily chart, indicating a strong negative breakout of the range trend. “Technically, this Nifty chart pattern indicates selling momentum after the formation of double top type pattern around 23800,” according to the market specialist. “On the weekly chart, the Nifty dipped into weakness after forming a doji-type candle pattern last week. The final three weekly candles show a negative reversal pattern. “More weakness may be in store for Nifty,” the analyst said.

“The Nifty’s short-term trend maintains. If the Nifty goes below 22800, it may head towards 22350. “Any pullback rally from here may encounter resistance around 23150,” the market guru noted. According to Nandish Shah, Deputy Vice President of HDFC Securities, the Nifty index has fallen by more than 1000 points since its latest swing high of 23869. The next support level for the Nifty is at 22700, which represents a 61.8% retracement of the whole rise from 21964 to 23869. “On the higher side, previous support of 23140 will interchange its role as a resistance for Nifty index,” a market professional stated.

Om Mehra, Technical Research Analyst at SAMCO Securities, stated that Nifty had broken free from its recent consolidation zone. As long as the Nifty index trades below 23000, “a sell-on-rise strategy remains favorable.”