Black Monday: GIFT Nifty crashes 900 points, Asian markets dive 10%; check key levels to watch

Japan's Nikkei sank 7.8 percent, while South Korea's benchmark lost 4.6 percent and Hong Kong's Hang Seng crashed 9 percent at 7.30 am IST.

The domestic benchmarks Nifty 50 and Sensex are likely to crash during the opening session on April 7, tracking global cues as Asian markets and Wall Street saw a sharp sell-off. Investors are continuing to flee their equity holdings in favour of safe haven assets, as U.S. President Donald Trump's retaliatory tariffs exacerbated fears of a global trade war, leading to geopolitical tensions and economic uncertainty.

At 7.20 am, the GIFT Nifty index was quoting 22,130, nosediving over 900 points or 3.6 percent. Asian markets traded in a see of deep red, as Wall Street futures dived.

S&P 500 futures slid 4.31 percent in trade, while Nasdaq futures dived 5.45 percent, adding to last week's almost $6 trillion in market losses. Japan's Nikkei sank 7.8 percent to lows last seen in late 2023, while South Korea lost 4.6 percent. Hong Kong's Hang Seng index and the Taiwanese benchmark sank 10 percent.

Further, despite the deep losses, Trump indicated he was not concerned about market losses that has already wiped out nearly $6 trillion in value from U.S. stocks. "I don't want anything to go down. But sometimes you have to take medicine to fix something," he said.

In the previous week, Sensex and Nifty 50 declined by 2.6 percent each. Nifty ended at 22,904 level, breaking below the 23k mark following a global sell-off sparked by U.S. President Trump’s tariff announcements and renewed concerns over economic slowdown.

Broader markets also witnessed selling pressure, with Nifty Midcap 100 and Nifty Smallcap 100 falling by 2 percent and 2.6 percent respectively. Amongst sectors, IT was the worst performer, plunging by 9 percent on concerns over reduced IT spending in the US. Nifty Metal slumped 7.5 percent due to potential disruption of business activities amid global trade war.

The breakdown from its recent consolidation zone has injected a sense of caution, turning previous support levels into fresh resistance. "Moreover, the index settled below its 20-day EMA, cementing the shift toward a bearish trajectory. Looking ahead, support is seen sliding towards the 22,800–22,700 zone, now emerging as an immediate floor based on past price action," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

Going ahead, the markets will now look for RBI meeting and expected rate cut next week to support the growth in domestic economy while keeping a tab on any potential relaxation on trade tariffs as US recession risks mount. Start of Q4 earnings season in coming weeks will also be crucial factor in determining the broader direction for markets in coming weeks.

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