Nifty 50 Hits Projected Target of 21,795 Amid Global Sell-Off – What Lies Ahead?

On April 7, 2025, Nifty 50 plunged nearly 1,000 points intraday, hitting my projected downside target of 21,795. This move confirmed strong bearish momentum, breaking multiple support zones and testing the lower trendline of its downward channel. 🔍 Technical Snapshot: RSI (Daily): At 32.42, nearing oversold zone. Price Action: Trading well below 9, 70, and 100 EMAs. Next Major Support: Between 21,750–21,700. A break below could lead to 21,175. Potential Pullback: Short-term bounce to 22,100–22,300 possible. Sustained uptrend only above 22,500 on strong volume. Top 5 losers today as of now are:

, , , , and 📊 Trade Setup: On bounce: Watch for rejection at 22,100–22,300, consider shorts with SL above 22,500. On breakdown below 21,750: Add shorts, target 21,175, SL above 22,000. Longs: Avoid unless a clear reversal sustains above 22,500. 🌐 Global Risk-Off Pressure: Triggered by fresh US tariffs on China. Dow Futures: -1,000 pts | S&P 500: -160 pts | Nasdaq: -700 pts. Nasdaq & Russell 2000: Now in bear market territory. Yuan devaluation risks (15–30%) could trigger EM capital outflows. 🪙 Market Reactions: Bitcoin: -7% | Ether: Multi-month lows. Brent Crude: Near multi-year lows. Gold: Mild profit booking. JPY & CHF: Gaining traction as safe havens. 📉 Asian Sell-Off: Hang Seng & Taiex: -10% Nikkei & Topix: -6% (circuit breakers triggered) Kospi & ASX: In correction territory. 🇮🇳 India’s Impact: Gap-down open led by FII selling and SGX Nifty weakness. INR under pressure, rising fears of capital outflows. Spike in India VIX signals heightened volatility. Rate-sensitive and export sectors hit by bond yield & commodity swings. 📌 What’s Next: Markets may remain volatile unless US-China tensions ease. Focus will shift to CPI, IIP, and Q4 FY25 earnings. Expect rotation into defensive sectors like FMCG, Utilities, and select Pharma, given their resilience during global uncertainty. Follow me for such updates!