Sensex Today : Market Faces Bearish Pressure Amid Global Turmoil | April 8 Pre-Market Analysis
Sensex Pre-Market Overview – April 7
After last week’s sharp correction in Indian equities, the Sensex enters Monday’s session on a nervous note, reflecting deepening concerns triggered by global economic headwinds. On Friday, April 4, the Sensex closed significantly lower at 75,365, registering a sharp decline of 1.22% from the previous session. The sell-off was broad-based, and investor sentiment remained weak, influenced by intensified global tensions—particularly the brewing trade war scenario led by the United States under Donald Trump’s fresh tariff announcements. These macro-level concerns have spilled over to Asian markets and are expected to dictate the Indian market’s tone for today.
The pre-market cues have already painted a grim picture for the upcoming session. The SGX Nifty was down by more than 816 points, or 3.54%, early in the morning, suggesting that Indian equities could open with a significant gap-down. While SGX Nifty is not a perfect predictor, it is a strong indicator of market sentiment and direction, and such a large fall indicates a likely bloodbath at the open. With global indices like the Dow Jones and Nasdaq also crashing on Friday, driven by China’s retaliation on the US with additional tariffs, the overall tone is expected to remain highly bearish.
Friday Recap – Sensex Tumbles Over 1%
Friday’s sell-off was primarily due to fears of a full-blown tariff war. The United States imposed fresh trade tariffs, to which China responded with a 34% retaliatory tariff on all US goods. This drastic move spooked global investors and led to a sharp decline in Wall Street, where the Dow Jones Industrial Average plunged over 2,200 points, closing 5.5% lower. The Nasdaq Composite, known for being tech-heavy, lost over 900 points, ending the session 5.82% lower. This type of decline is reminiscent of the COVID-19 market crash and reflects how volatile and fragile global investor sentiment currently is.
Sensex technical overview
From a technical standpoint, the Sensex appears to be in a clear downtrend. The Relative Strength Index (RSI) is hovering around 45, which shows a weakening bullish momentum. While it is not yet in the oversold territory, it does confirm that buyers are losing grip. The MACD (Moving Average Convergence Divergence) also indicates a bearish crossover, suggesting that further downside cannot be ruled out. The market structure has turned negative, and technical indicators are aligned with the idea that the bears are firmly in control for now.
Sensex Support and Resistance 7 April
Looking at support and resistance levels, the immediate support for the Sensex lies around the 73,600–73,700 zone. If this level breaks in today’s session, the market may slip even further, potentially triggering panic selling across midcaps and smallcaps as well. On the upside, the index faces strong resistance around the 76,000 mark, which also coincides with the highest Call Open Interest (OI)—signaling a stiff ceiling that bulls might struggle to cross unless there is a sharp reversal in global cues.
Sensex Open Interest data shows beraish sentiments
Open Interest data further supports the bearish narrative. The highest Call OI stands at 76,000, indicating heavy resistance at that level, while the highest Put OI is at 75,000, which has now been breached in the pre-market indication, thereby flipping previous support into a possible resistance zone. The Put-Call Ratio (PCR) is also on the lower side, which generally reflects a more pessimistic market sentiment. These derivatives data points strongly suggest that traders are bracing for more pain, at least in the short term.
Soucres: Sensibull
Adding to the pressure is the India VIX, which is currently at 13.75, but expected to spike sharply due to the volatility. A rising VIX generally indicates increased nervousness and fear among market participants, and today’s action might just prove to be the tipping point for a major sentiment shift in the short-term trend.
In terms of stocks in focus, one should keep an eye on heavyweights like Reliance Industries, HDFC Bank, Infosys, and TCS, as they tend to lead index-level moves. Any sharp fall in these names can accelerate the broader decline. Auto and IT sectors are particularly vulnerable today given their exposure to global economic trends and tariff-related concerns. Stocks like Tata Motors, Motherson Sumi, and Bharat Forge were among the hardest hit on Friday and could continue to see weakness.
Adivice for traders and investors
From an investment and trading perspective, it’s advisable to proceed with caution. Given the level of uncertainty and the potential for high intraday volatility, traders should wait for confirmation of support before entering long positions, and investors should avoid panic selling. While the long-term fundamentals of the Indian economy remain robust, such global shocks tend to cause short-term dislocations. It’s during such periods of uncertainty that risk management becomes more important than profit chasing. Fresh longs should be avoided until the market stabilizes, and high-leverage positions should be kept minimal.
To summarize, Monday’s trading session for the Sensex is expected to be highly volatile and largely negative, driven by global fears and weak technicals. With major support levels under threat and investor sentiment rattled, caution should be the strategy of the day. Watch out for global news flow, particularly any further escalation in the US-China trade conflict, as it will continue to be the primary driver of market direction in the near term.
Also Read Nifty Set for Major Fall as Global Tariff War Escalates | April 8 Pre-Market Outlook
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