Sensex Outlook for April 7: Will US Market Crash Rattle D-Street? Key Support and Resistance Levels to Watch

Mumbai:
Indian stock markets are bracing for a potentially volatile session on Monday, April 7, following a sharp sell-off in US markets driven by escalating trade tensions. On Friday, the Sensex dropped 930.67 points (1.22%) to settle at 75,364.69, while the Nifty 50 slipped below the 23,000 mark, mirroring a global slump.

The downturn was triggered by US President Donald Trump’s announcement of reciprocal tariffs, prompting China to retaliate with a 34% tax on US imports. The escalation hammered Wall Street, with the S&P 500 tumbling 6%, the Dow Jones plunging over 2,200 points, and the Nasdaq sliding 5.8%—marking one of the worst trading weeks since March 2020.

Meanwhile, GIFT Nifty, a key early indicator of market sentiment, fell over 400 points on Friday, suggesting a possible gap-down opening for Indian equities.

Expert Views: Cautious Optimism Amid Volatility

Despite the steep fall, market experts believe that the impact on Indian markets could be relatively limited, as the tariff burden on India remains lighter compared to countries like China, Vietnam, and Thailand.

“We expect the impact of reciprocal tariffs on India to be restricted,” said Siddhartha Khemka of Motilal Oswal.

Jigar Patel, Technical Analyst at Anand Rathi, noted that the markets were “oversold” on Friday, which may set the stage for a short-term rebound.

Sensex Support & Resistance Levels for Monday

• Support: 75,000
• Resistance: 75,800

A breakout above 75,800 could signal bullish momentum, while a drop below 75,000 may pull the index down toward 74,800, Patel explained.

What’s Ahead This Week?

Markets are likely to remain choppy ahead of the RBI’s monetary policy announcement on April 9 and the start of the Q4 FY25 earnings season with TCS set to report results on April 10.

Bajaj Broking advised using the current correction as an opportunity to accumulate quality stocks gradually.

With global uncertainties and domestic events lined up, all eyes will be on how D-Street navigates the storm this coming week.