Trade Setup for April 1: Nifty gears up as Wall Street stumbles on Trump’s Tariff jitters

The Indian stock market is preparing for an eventful trading session on April 1 as investors react to Wall Street's recent sell-off and brace for the impact of U.S. reciprocal tariffs set to take effect this week. Despite an initial rally, the Nifty 50 ended Friday's session lower, reflecting uncertainty ahead of global trade developments.

Market Recap: March 29 Trading Session

The Nifty 50 opened strong but struggled to hold its early gains. Sellers dominated the session, pulling the index down to close at 23,519, marking the end of the financial year 2024-25 on a weak note. The Nifty Bank index, despite a minor dip, recorded a 1.92% weekly gain and a 6.66% monthly gain, signaling overall bullish sentiment.

Key Technical Levels for Nifty and Nifty Bank

Nifty 50: Immediate support at 23,400 and resistance at 23,650-23,850. A break below 23,400 may lead to 23,200 levels.

Nifty Bank: Support at 51,000 and resistance at 52,100. Analysts suggest a buy-on-dips strategy, expecting a strong support base before the next rally.

Sector Performance & Stock Movements

Major Losers: IT stocks dragged the Nifty down, with TCS, HCL Technologies, and Wipro shedding 2-4%.

Top Gainers: BSE Ltd. surged 17% following SEBI’s proposed equity derivatives contract changes.

Sector Trends: Nifty FMCG and Private Banks stayed positive, while Media, IT, and Realty stocks faced losses.

FY25 Market Highlights

The Nifty posted 5% gains for the second consecutive financial year.

The Nifty Financial Services Index led sectoral performance, rising 19%.

Metal and Pharma indices recorded 10-11% gains.

27 Nifty stocks ended FY25 with positive returns, while Nestle, Bajaj Auto, and Adani Ports saw declines of over 10%.

Key Stocks to Watch on April 1

Vodafone Idea: Govt to convert dues into equity worth ₹36,950 crore, raising its stake to 49%.

Hindustan Aeronautics: Bags ₹62,700 crore defense contract.

LTIMindtree: Partners with Google Cloud for AI-driven business transformation.

Sun Pharma Advanced Research (SPARC): Files IND application with US FDA for cancer treatment trials.

IndiGo: Hit with a ₹944 crore tax penalty.

JSW Steel: Wins Dugda Coal Washery contract in Jharkhand.

NHPC: Begins commercial operations at Parbati-II HE Project.

BSE Ltd.: Announces 2:1 bonus issue.

United Spirits: Selling Malabar Hill property for ₹172 crore.

Looking Ahead: Key Market Drivers

Global Impact: U.S. reciprocal tariffs taking effect on April 2 will be a key focus.

FII & DII Activity:

Foreign Investors: Net sellers at ₹4,353 crore.

Domestic Institutions: Net buyers at ₹7,646 crore.

Technical Outlook: If Nifty stays above 24,200, further upside is expected. Otherwise, consolidation may continue around 23,400-23,600 levels.

With a holiday-shortened week ahead, market participants will closely monitor global trade policies and investor sentiment to gauge the next major moves in equities.