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Monday, April 07, 2025

Storm Clouds Hover: Indian Markets Brace for a Bumpy Ride...

As the Indian stock market tiptoes into the week of April 7, 2025, storm clouds gather thick on the horizon. Last Friday’s brutal selloff sent the Nifty crashing below the psychologically crucial 23,000 mark—breaking key supports and rattling investor confidence. The index now finds itself stranded in a no man’s land, boxed in by support at 22,700–22,800 and resistance at 23,100–23,200.

The broader market isn't just limping—it’s bleeding. Over 70% of BSE-listed stocks ended Friday deep in the red, underscoring the breadth of the panic. Institutional investors weren’t in the mood for mercy either: Domestic Institutional Investors (DIIs) dumped ₹1,720.32 crore, while Foreign Institutional Investors (FIIs) offloaded a staggering ₹3,483.98 crore on last Friday Together, that’s over ₹5,200 crore fleeing the markets in a single session—a stampede, not a stroll.

Global cues aren’t offering solace. U.S. futures slid sharply over the weekend, shedding 4–5% amid a spike in the VIX past 45—a glaring red flag that turbulence is far from over. Donald Trump's fresh salvo of tariff hikes on Chinese goods was met with a fierce counterpunch—Beijing slapped a 34% retaliatory duty on U.S. imports. The fallout? Cheaper Chinese goods might flood into India, pressuring domestic industries already walking a tightrope.

Back home, the rupee is doing a not-so-graceful belly dance, swaying wildly with every global hiccup. And just when we thought it couldn't get worse, the warning messages started pouring in from analysts regarding the U.S. inflation data—ready to play villain in this already tragic soap opera. If the dollar flexes its muscles any further, expect foreign investors to pack their bags faster than you can say “global headwinds.”

FIIs? They’ve practically ghosted us. It’s like they came to the party, had a look around, tasted the samosas, and decided, “Nah, lets call of the party”, before running for the exits.

In short: it’s raining trouble, the rupee’s got the jitters, and FII love is fading faster than New Year resolutions in February. It’s a circus out there, and the trapeze net is missing. Buckle up—or better yet, grab popcorn and watch from the sidelines!

The strategy? Batten down the hatches. Defensive sectors like FMCG and IT may offer temporary shelter, but this is not the time to play hero. Any bounce in the Nifty toward the 23,100–23,200 zone might simply be a trap door in disguise—a shorting opportunity rather than a buying signal.

Until the global winds ease and institutional sentiment steadies, discretion is the better part of valor. In this market, survival is strategy and caution is the Mantra.

You may therefore either postpone your immediate buying decisions or buy/average only select stocks near their long term supports.

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