Nifty 50 Sensex Today: Indian Stock Market Set for Gap-Down Opening on April 7 Amid Global Selloff
Nifty 50 Sensex : The Indian stock market is bracing for a turbulent start on Monday, April 7, as global markets crash under the weight of recession fears triggered by the US tariff policy. Benchmark indices, including the Sensex and Nifty 50, are likely to open significantly lower, tracking the carnage in global equities.
Early indicators from the Gift Nifty, trading at around 22,128, signal a sharp gap-down opening — a discount of nearly 830 points from the previous Nifty futures close. This is a clear reflection of the nervousness prevailing across global financial markets.
Global Cues: A Stormy Backdrop
The global equity markets are reeling under pressure. On Friday, the Nasdaq Composite officially entered a bear market, and the Dow Jones Industrial Average slipped into correction territory, raising serious alarms about a possible recession.
The sharp decline in US indices capped a volatile week:
- S&P 500 fell 9.1%
- Dow Jones declined 7.9%
- Nasdaq plunged 10%
This bloodbath was driven by fears that US President Donald Trump’s aggressive reciprocal tariff policy could trigger a global trade war, fueling a broader economic downturn.
Asian markets mirrored this weakness in early Monday trade, setting the stage for a heavy sell-off in Indian equities.
Indian Market Recap: Sell-off Hits Hard
Indian equities didn’t escape the pressure last week. On Friday, the Sensex crashed 930.67 points to close at 75,364.69, while the Nifty 50 tumbled 345.65 points, settling at 22,904.45. The sell-off was broad-based, reflecting risk-off sentiment among investors.
What to Expect Today: Nifty 50 Outlook
Experts anticipate continued weakness in Nifty 50. The formation of a bearish Marubozu candlestick on the daily chart signals intense selling pressure.
Key Technical Insights:
- A double-top formation around 23,800 levels has led to a downward reversal.
- The index has slipped below its 20-day and 50-day moving averages, indicating a loss of short-term momentum.
- Support is expected around 22,350–22,500, while resistance is likely near 23,100.
“If Nifty 50 breaks below 22,800, it could slide to 22,350. Any pullback could face resistance at 23,150,” said Nagaraj Shetti of HDFC Securities.
Om Mehra of SAMCO Securities added, “The index has breached its daily Supertrend indicator. A drop towards 22,550 is very likely unless strong buying support kicks in.”
Bank Nifty: Signs of Strength Amid Chaos
Unlike broader markets, Bank Nifty has shown relative strength, ending Friday at 51,502.70, down just 0.18%. The index has retraced only 30% of its recent rally, indicating bullish undertone in the medium term.
“Bank Nifty’s shallow retracement and support above 50,500 is encouraging,” said Bajaj Broking. “If it sustains above 50,500, we expect it to gradually rise towards 52,050–53,000.”
However, technical analysts also caution about RSI divergence and emerging weakness on shorter timeframes. A dip to 50,800 in the near term remains a possibility before a bounce resumes.
Financial Ratios Snapshot (as of April 7)
| Index | Current Level | P/E Ratio | P/B Ratio | Dividend Yield |
|---|---|---|---|---|
| Nifty 50 | 22,904.45 | 22.5 | 4.4 | 1.20% |
| Sensex | 75,364.69 | 23.1 | 3.9 | 1.25% |
| Bank Nifty | 51,502.70 | 15.2 | 2.2 | 1.65% |
Investor Strategy for April 7
- Remain cautious: Global headwinds are too strong to ignore.
- Avoid aggressive buying: Wait for signs of stabilization before entering fresh trades.
- Watch support levels: Nifty near 22,350 and Bank Nifty at 50,500 are critical.
- Look for resilience in quality banking stocks for staggered accumulation.
Q&A: Breaking Down Today’s Market Scenario
Q1: Why is the Indian stock market expected to open lower today?
A: Because of a global market crash caused by recession fears due to US tariffs, and bearish cues from Gift Nifty, which signals a gap-down opening.
Q2: What happened in the US markets last week?
A: The Nasdaq entered a bear market, Dow entered correction, and the S&P 500 fell over 9% — the worst week since the COVID crash.
Q3: How did the Indian indices perform on Friday?
A: Sensex dropped 930 points, and Nifty 50 lost over 345 points, closing below 23,000.
Q4: What is the support level for Nifty 50?
A: Immediate support lies around 22,500–22,350. If broken, further downside is possible.
Q5: Is Bank Nifty showing signs of strength?
A: Yes. Despite the overall market weakness, Bank Nifty has shown resilience, with key support at 50,500 and potential to rise towards 53,000.
Q6: Should investors buy the dip?
A: Not aggressively. Use this phase to accumulate quality stocks in a staggered way, especially in strong sectors like banking.
Conclusion:
Today’s session is likely to be volatile and dominated by negative sentiment. Investors should tread carefully and focus on capital preservation until clear signs of market stability emerge. Monitoring technical levels and global developments will be crucial for navigating this phase successfully.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.