Synopsis
The Indian stock market opened lower on March 4, 2023, driven by weak global cues, particularly in the auto and IT sectors. Analysts suggest the market faces significant resistance and support levels as global trade tensions escalate due to US tariffs.Key Takeaways
- Indian benchmark indices opened lower on March 4, 2023.
- Weak global signals influenced the decline, particularly in auto and IT sectors.
- Immediate support for Nifty is at 22,000.
- Canada's retaliatory tariffs could impact US imports significantly.
- Market analysts indicate a sideways to bearish trend requires a breakout for recovery.
Mumbai, March 4 (NationPress) The Indian benchmark indices began the day on a negative note on Tuesday, influenced by weak global signals, with notable selling pressure observed in the auto and IT sectors during initial trading.
As of approximately 9:30 am, the Sensex was lower by 363.22 points or 0.50 percent, sitting at 72,722.72, while the Nifty fell by 125.80 points or 0.57 percent to 21,993.50.
Experts indicate that the uncertainty generated by US President Donald Trump is worsening the global trade landscape.
“The implementation of a 25 percent tariff on Canada and Mexico, along with a 20 percent tariff on China (plus an additional 10 percent now) is transforming threats into reality. The repercussions of these tariffs from Trump are still unfolding. Responses are expected,” they noted.
In retaliation to the tariff increase from the Trump administration, Canada will apply 25 percent tariffs on US imports valued at 30 billion Canadian dollars starting Tuesday. An additional 125 billion Canadian dollars worth of US imports will face tariffs within the next 21 days.
Meanwhile, the Nifty Bank index dropped 91.80 points or 0.19 percent to 48,022.50. The Nifty Midcap 100 index was at 47,100.65, down by 883.50 points or 1.84 percent. The Nifty Smallcap 100 index fell to 14,409.35, a decline of 251.50 points or 1.72 percent.
Market analysts suggest that the Nifty has immediate support at 22,000, followed by levels at 21,850 and 21,600, while resistance levels are at 22,500, 22,600, and 22,800.
"A drop below 22,000 could heighten selling pressure towards 21,800, while recovery above 22,500 might spark a relief rally. The index is currently in a sideways to bearish trend, necessitating a definitive breakout for a trend reversal," commented Mandar Bhojane from Choice Broking.
In the Sensex constituents, Tech Mahindra, HCL Tech, Nestle India, Infosys, Tata Steel, M&M, and Titan were among the top losers. In contrast, ICICI Bank, HDFC Bank, and SBI emerged as the top gainers.
During the previous trading session, the Dow Jones dropped 1.48 percent, closing at 43,191.24. The S&P 500 fell by 1.76 percent to 5,849.72, while the Nasdaq saw a decline of 2.64 percent, ending at 18,350.19.
In Asian markets, only Bangkok was performing positively, while China, Japan, Seoul, Jakarta, and Hong Kong were all experiencing losses.
Foreign institutional investors (FIIs) have continued their selling trend for the eighth consecutive day, offloading equities worth Rs 4,788.29 crore on March 3. Conversely, domestic institutional investors (DIIs) purchased equities totaling Rs 8,790.70 crore on the same day.
