Nifty Looks Ready to Nose Dive after Bumpy Moves

Analyzing the movements of the Nifty 50 index, I anticipate that the current uptrend is likely to end on Monday amid growing concerns over the imposition of reciprocal tariffs by the Trump administration from Apr. 4, 2025.

Today’s move seems only a reactionary move based on some recovery in the Indian Rupee, but the upside in Nifty seems to be limited.

The upside in the Nifty 50 seems to be capped due to growing concerns over the surging fiscal deficit after the imposition of new tariffs next week.

Technical formations also look evident enough backing for the extensive bearish pressure at the current levels that is likely to generate a fresh selling spree by the FIIs this week if the Nifty 50 does not hold above the significant support at 100 DMA at 23,523 in today’s trading session.

Technical Levels to Watch



In the Daily Chart, the Nifty 50 is trying to hold significant support on Monday, after some bumpy moves since Mar. 18, 2025, after the formation of a bullish crossover by the 9 DMA and 20 DMA that pushed the nifty above the 50 DMA at 22,971 but Monday’s gap-up opening is likely to attract big bears to load shorts at the current levels.

Inversely, if the Nifty 50 tries to move upward, the next significant resistance will be at 200 DMA at 24,069, from where big bears could enter the scenario.

I anticipate that the Nifty 50 could remain extremely weak if not able to defend the significant support at 100 DMA in today’s trading session.



In the Weekly chart, the Nifty 50 is teetering at the 20 DMA, just below the immediate resistance at 50 DMA at 23,837 after the formation of a bearish crossover by the 9 DMA and 20 DMA which have crossed the 50 DMA downward.

I anticipate that the formation of a bearish doji on Monday could drag down the Nifty if it finds a breakdown below the immediate support at 20 DMA and 9 DMA during this week.

Inversely, if the Nifty sustains above the immediate resistance at 50 DMA at 23,836 during this week, some move upside can be seen but the next week is likely to be supportive for the bears to remain on the top.

Disclaimer: Readers are advised to take any position in Nifty 50 at their own risk as this analysis is based only on the observations.