Trade Setup for April 4: Nifty needs a break above 23,350 for upside

The Indian stock market showed resilience despite global volatility, with the Nifty 50 managing to recover from a weak start before settling lower. Investors navigated the impact of U.S. President Donald Trump’s latest tariff announcement, which initially spooked markets but failed to cause a major sell-off in Indian equities.

Market Recap: Mixed Trends Amid Global Headwinds

After opening lower due to weak global cues, the Nifty 50 quickly rebounded but remained range-bound for most of the session. The index ultimately ended 82 points down at 23,250. The Sensex also saw minor losses as investors absorbed the implications of Trump’s reciprocal tariffs.

While broader markets outperformed, with the Nifty Midcap 100 gaining 0.21% and the Nifty Smallcap 100 up 0.58%, key sectors had a mixed performance:

Top Gainers: Pharma, Healthcare, and PSU Banks provided stability, with the Nifty Pharma index jumping 2% as the sector remained unaffected by U.S. tariffs.

Top Losers: The IT sector faced the biggest hit, with the Nifty IT index dropping 4%. Tech giants TCS, Infosys, HCLTech, Wipro, and Tech Mahindra each fell 3-4%, while midcap IT stocks like Persistent Systems, Coforge, and KPIT Technologies saw losses of up to 10%.

Auto stocks remained under pressure, slipping 1% as earlier 25% tariffs remained in place despite being exempt from new reciprocal duties.

Key Levels to Watch for Nifty

According to Nagaraj Shetti of HDFC Securities, the short-term Nifty trend remains range-bound with a slight downside bias. He notes that the index is forming a potential higher bottom reversal pattern near the 23,100 support level. A strong move above 23,350 could shift momentum upward, with resistance around 23,650 in the near term.

Meanwhile, LKP Securities' Rupak De emphasized that as long as Nifty stays above 23,100, the bullish trend remains intact. If the index crosses 23,430, it could trigger a stronger rally.

The Big Question: Can Nifty Stay Resilient?

Despite global turbulence, Indian markets have demonstrated strong underlying sentiment. The coming sessions will determine whether Nifty can hold key support levels or if further global pressure could lead to sharper corrections.