It was a day of despair and resilience on Dalal Street as the Nifty 50 nosedived 743 points, mirroring the global financial storm sparked by Wall Street’s record slump. However, despite the turbulence, the index managed to recover nearly 500 points from its intraday low, offering a sliver of hope to rattled investors.
A Rollercoaster Monday for the Markets
On Monday, April 7, the Indian benchmark index Nifty 50 opened deep in the red, following a brutal sell-off in the U.S. that wiped out over $5 trillion in market cap across global bourses. At one point, Nifty was trading well below the crucial 21,964 mark—a swing low from March 4—but it managed to claw its way back to close just above this level, ending the session at its day’s high.
The India VIX, which measures market volatility, soared by a staggering 66%, closing above 22, indicating heightened nervousness and increased hedging activity.
Widespread Selling with a Hint of Recovery
Of the Nifty 50 constituents, only Hindustan Unilever emerged unscathed. The rest bled, but many of them bounced off their lows as the session progressed, suggesting that panic selling gave way to selective bargain hunting in the latter half of the day.
This meltdown in Indian equities wasn’t isolated. It was a reactionary tremor from Wall Street, where U.S. futures continue to flash red, down by nearly 1,200 points, adding fuel to fears of a synchronized global downturn.
Trump’s Comments Add to the Stir
Speaking amid the financial storm, Donald Trump, whose 10% reciprocal tariff policy is widely believed to have triggered the Wall Street rout, remarked cryptically, “Sometimes medicines need to be taken to fix something,” suggesting that economic pain might be part of a larger plan.
But for investors, especially retail participants, this “medicine” came without warning, sending shockwaves across portfolios.
Technical Levels, Retracements, and What Lies Ahead
Before Monday’s crash, the Nifty had staged an impressive 1,900-point recovery from its March 4 low. However, by Friday, 50% of that rally had already been surrendered. The 61.8% Fibonacci retracement level at 22,692 was rendered meaningless amid the carnage, especially with GIFT Nifty showing continued weakness.
According to Rohit Srivastava of Indiacharts.com, all eyes are now on 21,281, the low hit on June 4 during the Lok Sabha election result day. A breach below this support could open the floodgates for further downside, with bearish momentum likely to accelerate.
All Eyes on RBI and TCS This Week
Amid the chaos, the market is bracing for two pivotal events:
- RBI Policy announcement on Wednesday, where commentary around inflation, interest rates, and growth will be closely scrutinized.
- TCS earnings on April 10 (Thursday), which will formally launch the Q4 earnings season, offering insights into corporate resilience amid macroeconomic headwinds.
Final Word: A Market on the Edge
Today’s session may have ended off the lows, but the pain was palpable, the nerves were frayed, and the path ahead looks foggy. While technical indicators show oversold conditions, the sentiment remains fragile, and the street knows that more volatility is in store.
For now, the bulls can only hope the worst has passed, but with global cues still shaky and domestic triggers lined up, caution may well be the only strategy worth banking on.
