After a tumultuous trading session that saw the NIFTY 50 index plunge by 3.24% on April 7, 2025, the Indian stock market is bracing for a potential recovery on April 8, buoyed by strong global market cues. The GIFT Nifty has surged by 1.51%, or 336 points, reaching 22,656.00, indicating a possible gap-up opening and a broader buying trend across Indian equities.
Global markets have shown a robust performance as of early April 8, with indices like Japan's Nikkei 225 climbing by 5.64% (1,757 points), Hong Kong's Hang Seng up by 2.05% (405 points), and Australia's ASX 200 rising by 1.47% (108 points). Other markets, including Korea's KOSPI and China's SSE Composite, are also showing positive movements, further supporting the optimistic sentiment in Indian markets.
Several factors contribute to the anticipated rebound in the NIFTY 50. The GIFT Nifty's strong performance suggests a positive opening, reversing much of the losses from the previous trading day. Asian indices have all registered significant gains, reflecting a renewed appetite for risk among investors. In addition, there have been no major negative triggers reported globally overnight, which could have dampened sentiment further.
Market analysts are particularly optimistic about sectors that were heavily sold off in the previous session. Short-covering is expected in the IT, Banking, and Auto sectors, which have been under pressure. The technical setup for the NIFTY 50 indicates a previous close of 22,161.60, with an expected opening range between 22,500 and 22,650. Resistance levels are identified at 22,700 and 22,900, while support levels are noted at 22,200 and 21,950.
“We’re seeing a textbook global relief rally after last week’s panic. NIFTY 50 is well-positioned for a rebound, with momentum driven by GIFT Nifty and strong Asian market openings,” said Manisha Singh, Market Strategist at EquiPulse India. She cautioned, however, that any gap-up must be watched for sustainability post 10 am, as profit booking could emerge at higher levels.
Despite the positive outlook, the previous day’s trading session was marked by significant volatility. The benchmark BSE Sensex experienced its steepest decline in ten months, crashing by 2,226.79 points (2.95%) to close at 73,137.90. During intraday trading, the Sensex hit a low of 71,425.01, a staggering drop of 3,939.68 points (5.22%). The NIFTY also faced a sharp decline, falling 742.85 points (3.24%) to settle at 22,161.60 after hitting an intraday low of 21,743.65.
Osho Krishan, Senior Analyst at Angle One, attributed the recent market correction to escalating trade tensions and global uncertainty. “The Indian equity markets have experienced a notable correction, primarily attributed to global turmoil induced by reciprocal tariff measures. This situation has resulted in a significant decline in equity performance,” he explained.
Investor sentiment remains cautious, particularly as the market has hit its lowest point for the calendar year. “The recent downturn in the market has resulted in unprecedented lows for the calendar year, prompting participants to adopt a more cautious approach as they navigate these challenging times,” Krishan noted. The volatility index (VIX) spiked over 65% in just one day, indicating heightened uncertainty among investors.
Despite these challenges, domestic investors have shown resilience. Krishan highlighted a recovery in the last hour of trading on April 7, which underscored the strength and determination of local participants. He identified critical support and resistance zones for the upcoming trading sessions. “On the support levels, we anticipate that 22,000-21,800 will serve as a cushion, helping to stabilize the market amid the heightened volatility,” he stated. However, he warned that any breach below this support level could lead to further declines towards 21,750-21,400.
Looking ahead, market expert Jatin Gedia, a Technical Research Analyst at Mirae Asset Sharekhan, remains cautious about the short-term outlook. He emphasized that even if there is a pullback in the next couple of trading sessions, it may not sustain due to large numbers of long positions stuck at higher levels. “So, even if the market in today’s trading session also from the lows we did see a pullback towards 22,200, however, that was immediately sold into,” Gedia cautioned. He suggested that until a base formation is observed, meaningful upward movement may not materialize in the coming weeks.
For the immediate trading session on April 8, Gedia expects minor bounce-back possibilities, but he believes that selling pressure will likely persist. He identified 21,500 as the immediate support level on the downside and 22,200 as resistance on the upside. As traders prepare for the day ahead, they are advised to remain cautious and closely monitor market movements.
In summary, while the NIFTY 50 is set for a bullish start on April 8, supported by strong global markets and a sharp uptick in GIFT Nifty, volatility may continue to play a significant role in trading strategies. The overall sentiment has shifted from panic to optimism, but traders should remain vigilant as they navigate this fluctuating landscape.
