The headline Nifty 50 and Sensex might stage a rebound in trade on April 8, tracking positive cues from Asian markets and GIFT Nifty as investors hunt for bargains following the global sell-off.
At 7.35 am, the GIFT Nifty index was quoting 22,652.5, soaring 1.5 percent on traders' optimistic bets.
Japan's Nikkei share average rose 6 percent on Tuesday in a widespread rally, rebounding from a 1-1/2-year low hit in the previous session. Hong Kong's Hang Seng index and South Korea's KOSPI also saw sharp gains. On the flip side, Taiwan's benchmark index continued to languish in the red, after trading was halted in the previous session.
Overnight, Wall Street ended the April 7 session with cuts, extending losses. The Dow Jones fell 0.91 percent and the S&P 500 lost 0.23 percent, while the Nasdaq Composite gained ended flat, higher by 0.1 percent.
After closing lower over the past three session, US futures were trading in the green. Dow Jones futures soared 1.5 percent, jumping 750 points. Nasdaq and S&P 500 futures were both 1.6 percent higher.
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Since the tariff woes have plagued the global markets, experts have noted that Indian markets were relatively better placed compared to the Asian peers on account of lower tariffs and less reliability on US exports.
Even if the markets bounce back during this session, analysts expect the market to remain volatile on the back of ongoing global trade tension and potential further developments on the US tariff front.
In the previous session, the market opened with a significant gap down but, following the gap down, witnessed intraday recovery from lower levels. However, the short-term texture of the market is still on the weak side.
"We believe that the current market environment is extremely volatile and uncertain; hence, traders may prefer to adopt a cautious stance in the near future," said Shrikant Chouhan, Head Equity Research, Kotak Securities.
He shared that in the short term, 22,000 would be the key level to watch. If the market manages to trade above this level, the pullback formation could continue up to 22,500-22,600. On the flip side, a dismissal of 22,000 may lead to further weakness.
Below this level, the market could retest the 21,800 mark, and additional weakness may continue, potentially dragging the index down to 21,650.
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