Market May Fall Further

Mumbai: On Tuesday, the benchmark indices corrected sharply, with BSE Sensex was down by 1,390 points. Among the sectors, the Realty Index was the top losers, shed over three per cent. Meanwhile, despite weak market sentiment, the Media Index gained two per cent.

Technically, after a weak opening, the market bounced back sharply; however, due to consistent selling pressure at higher levels, it again corrected sharply again. A long bearish candle on daily charts, combined with a correction continuation formation on intraday charts, indicates further weakness from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the day traders, 75,800 would be the key support zone.If the market manages to trade above this level, we could expect a pullback rally to 76,500.” On the flip side, a dismissal of 75,800 could accelerate the selling pressure. If this level is breached, the Sensex will be at 75,500-75,300.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Investors slashed their equity bets ahead of the start of Trump’s reciprocal tariff imposition on imported goods from Wednesday, as the decision is expected to affect the advantage India had over the US for many years.”

In fact, domestic markets underperformed other global indices as investors fear the tariff decision could hurt the sentiment and trigger further downfall.

Vaibhav Vidwani, research analyst, Bonanza, said: “Sensex plummeted by over 1,390 points to close at approximately 76,024.The primary reason for the market’s downside was investor apprehension ahead of US President Donald Trump’s announcement of broad-based reciprocal tariffs on April 2, which he termed ‘Liberation Day’. These tariffs are expected to target all countries, raising fears of a global trade war that could slow economic growth and impact sectors heavily reliant on international trade, such as IT and pharmaceuticals.”

Additionally, profit booking after a strong rally and concerns over weaker demand in the IT sector contributed to the market volatility. The market capitalization of listed companies on the BSE also declined significantly, reflecting the widespread impact of these global economic uncertainties.

STOCK PICKS

Siemens Buy | Entry: Rs5229 | SL: Rs5150 | Target: Rs5400

Siemens has shown strong accumulation at lower levels, indicating a potential upside move. A breakout above Rs5250 could trigger further buying interest, pushing the stock towards Rs5400 levels. The capital goods sector remains in focus, supporting bullish sentiment. A strict stop loss at Rs5150 should be maintained to manage downside risk.

Hindustan Aeronautics Ltd (HAL)

Sell | Entry: Rs4223 | SL: Rs4300 | Target: Rs4100

HAL has entered a resistance zone, facing profit booking at higher levels. The stock has shown signs of weakness, with selling pressure increasing near Rs4250. If it breaks below Rs4,200, further downside towards Rs4,100 levels is likely. A stop loss at Rs4,300 should be placed to limit losses in case of reversal.

(Source: Mehta Securities)