Trade Setup for April 8: Nifty may revisit June 4 lows after ₹13 lakh crore meltdown

Indian markets witnessed a rollercoaster session on Monday, April 7, as the Nifty 50 nosedived over 1,000 points at one point — its sharpest opening fall since March 2020 — before staging a remarkable 500-point recovery. The index eventually closed at 22,162, down 743 points, but significantly off its intraday low of 21,743, which now emerges as a crucial short-term support.

The intense volatility came on the back of growing global trade tensions and fears of a recession, sparking widespread sell-offs. The India VIX shot up by a record 70%, highlighting the panic-driven trading activity.

Massive Erosion in Market Value

Investors lost a staggering ₹13 lakh crore in a single day, as BSE-listed companies saw their market capitalization shrink dramatically. All Nifty 50 stocks closed in the red — barring Hindustan Unilever — though most clawed back some losses by the end of the session.

Sector Shake-Up

The worst-hit sectors included Metals, Auto, and IT, each falling between 3–7%. Mid and small-cap stocks were also hammered but bounced back sharply from their lows. The Nifty Midcap 100 recovered over 6% intraday but still closed 3.63% lower. The Nifty Smallcap 100 rebounded 7% but ended down 3.88%.

Stock in Focus

Trent was the day’s biggest loser on the Nifty, tumbling 20% following a disappointing Q4 business update. The stock is now trading near its June 2024 levels after three consecutive sessions of decline.

Market Outlook & Key Levels

Analysts are cautioning that more downside is possible. According to Rohit Srivastava (Indiacharts.com), the key level to watch is 21,281 — the Nifty's June 4 election result day low. A breach below this could open the floodgates for deeper correction.

Support levels:

21,900 (short-term)

21,743 (swing low)

21,300 (technical breakdown level)

Resistance levels:

22,350 – 22,550 (immediate)

22,500 – 22,800 (broader zone)

Rupak De (LKP Securities) noted the trend remains weak, while Ajit Mishra (Religare Broking) emphasized the importance of holding the 21,700 mark to avoid a deeper correction.

Despite the chaos, some experts believe Indian equities could weather this storm better than global peers, given the underlying strength of the domestic economy.