Nifty50 prediction April 7: Bearish sentiment likely amid global uncertainty

The Nifty 50 index is expected to face continued pressure on Monday, April 7, after closing sharply lower last Friday. A breakdown from recent consolidation patterns and the formation of a long bearish candle on the daily chart are clear signs of weak market sentiment. The immediate support level is seen at 22,800.

What’s Dragging the Market?

The market decline was triggered largely by global events, most notably the surprise tariff announcements by U.S. President Donald Trump. These measures have stoked fears of a potential global economic slowdown, leading to a widespread sell-off in equity markets worldwide.

Siddhartha Khemka, Head of Research at Motilal Oswal Wealth Management, emphasized that the global sell-off, combined with domestic concerns, led to the Nifty falling by 346 points (-1.5%) to close at 22,904, dipping below the crucial 23,000 mark.

Key sectors took a hit:

Metal stocks fell 6.5%, fearing trade disruptions.

Pharma declined 4% amid concerns about sector-specific tariffs.

IT dropped over 3% in line with the U.S. Nasdaq's fall.

Broader indices like Nifty Midcap100 and Smallcap100 also saw steep declines of 2.8% and 3.5%, respectively.

What to Watch Next Week?

Investors will closely monitor key global and domestic events:

U.S. Federal Reserve Chair Jerome Powell's speech is expected to offer insights into the central bank’s view on the economy and policy direction.

RBI’s monetary policy decision on April 9 is a major domestic trigger.

TCS Q4 earnings announcement on April 10 will kick off the corporate earnings season.

Khemka noted that markets may remain volatile, with sector-specific movements likely based on the RBI decision, earnings updates, and global cues.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, confirmed that Nifty has broken below the consolidation phase, indicating a bearish tone. He said:

If Nifty drops below 22,900, it could fall further to 22,676.

On the flip side, if it climbs above 23,100, a strong upward trend could emerge.

Broader Sentiment Still Weak

Vinod Nair, Head of Research at Geojit Financial Services, added that although India may not be directly affected as severely as other economies, the impact of U.S. tariffs is more significant than initially thought. Falling U.S. bond yields and oil prices further signal rising fears of a global recession.

Nair noted that a gradual improvement in corporate performance may come in the fourth quarter, but near-term market sentiment is expected to stay weak, leading to continued consolidation.