FPIs initially shifted funds to more attractive markets like China, but Trump’s trade policies and weaker-than-expected Indian corporate earnings have exacerbated the exodus.
Meanwhile, India’s equity market this week will be guided by developments on tariff front, Q4 results and inflation data. Markets will remain closed on April 14 (Ambedkar Jayanti) and April 18 (Good Friday), limiting trading to three days.
Puneet Singhania, Director at Master Trust Group said that the upcoming week is set to be volatile for global and Indian markets, as the trade war between China and the US intensified with both countries imposing tariffs on each other causing turmoil in the markets.
“A strong marubozu candle formed on the weekly chart, indicating buying interest at lower levels. However, India VIX surged 46% this week to hover near 20, reflecting continued high volatility. The index is trading below its crucial 21-day and 55-day EMAs, hinting a weak trend,” said Singhania.
He added, “Key supports lie at 22,500 and 22,200, while resistance is seen near 23,050. In this uncertain environment, Nifty remains a sell-on-rise market. Traders should stay cautious and avoid aggressive long positions until volatility subsides and technical strength is confirmed.”
