Nifty Prediction Tomorrow, April 02, 2025: Tariff Tremors! Can India's Market Steady Amid Global Uncertainty?

Nifty Prediction Tomorrow, 2nd April: Stock markets went into a tailspin on Tuesday. The NSE Nifty dropped 353.65 points or 1.50 per cent to 23,165.70. The key indices logged their steepest single-day losses in a month.

The domestic indices witnessed a weak start, reflecting market apprehensions surrounding the April 2 deadline, dubbed "Liberation Day" by US President Donald Trump . This marks the implementation of proposed tariffs, which could potentially trigger retaliatory measures from other nations.

As Sugadha Sachdeva, Founder of SS WealthStreet, explains, "President Trump has indicated that these tariffs would include several countries, rather than all countries. So there are concerns about a potential US economy slowdown and inflationary pressures building up in the US economy."

The ripple effects of these tariffs are expected to impact global growth and cloud the outlook for Federal Reserve rate cuts. Sachdeva notes, "That will have a major impact at the global growth as well. And that would also cloud the outlook for fed rate cuts further."

Nifty IT Index

Closer to home, the Nifty IT index faced significant pressure due to its reliance on earnings from the US. "In case there is a slowdown in the US economy, it is going to hurt our IT companies. And there have been global agencies which have downgraded the outlook for FY26 earnings of the IT company," Sachdeva highlights.

Sectoral analysis reveals widespread declines, with caution dominating market sentiments. "It remains to be seen whether President Trump relaxes his tariffs or he’s going ahead with all of the proposed tariffs. So there's a lot of caution in the market and that is weighing on the sentiments," Sachdeva adds.

Market participants are also keeping a close eye on upcoming US economic data, including non-farm payrolls and manufacturing and services PMI figures, which could further influence market trends.

Sell On Rise

In terms of technical levels, Sachdeva outlines key support and resistance points for the Nifty index. "Nifty has a near-term support at 23,120 odd levels. As long as that holds, we may see a slight bounce back, yet 23,650–23,800 remains crucial resistance areas. On the downside, we expect that in case the 23,120 mark is breached convincingly, we are likely to see Nifty sliding towards 22,900 odd levels in coming days."

The prevailing trend, according to Sachdeva, remains "sell on the rise" until the resistance levels of 23,650–23,800 are convincingly surpassed on a closing basis.

Bank Nifty Index

Similarly, Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan said, "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."

"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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