Market Turmoil: Sensex, Nifty Drop Amid Trump’s Tariff Announcement and Weak Rupee, Eicher Motors and Adani Power Stand Out

The Indian stock market is under pressure as the Sensex and Nifty decline amid global trade tensions triggered by Trump’s new tariffs on Canada, Mexico, and China. The rupee has hit a historic low, and metal stocks are suffering, while Eicher Motors and Adani Power show resilience. Despite the downturn, stock recommendations suggest buying Eicher Motors and Interglobe Aviation.

CONTENTS:

• F&O Strategy: Rupak De Recommends Buying Can Fin Homes, Cochin Shipyard, and Power Grid in a Declining Market
• Dow Futures Drop Over 450 Points as Trump Imposes New Tariffs on Key Trade Partners
• Stock Market Update: Sensex and Nifty Take a Hit Amid Global Tensions and Budget Disappointments, But Maruti and Eicher Motors Show Resilience
• Market Update: Sensex and Nifty Decline Amid Trump’s Tariffs and Rupee Weakness; Eicher Motors and Adani Power Stand Out

Market Turmoil: Sensex, Nifty Drop Amid Trump’s Tariff Announcement and Weak Rupee, Eicher Motors and Adani Power Stand Out

F&O Strategy: Rupak De Recommends Buying Can Fin Homes, Cochin Shipyard, and Power Grid in a Declining Market

Technical Insights on F&O Market by Rupak De, Senior Technical Analyst at LKP Securities

Market Turmoil: Sensex The domestic stock market faced a downturn on Monday, influenced by regional market weakness following US President Donald Trump’s imposition of extensive tariffs on Canada, Mexico, and China, fueling concerns about a potential trade war.

As of 11:42 IST, the Nifty 50 index had declined by 0.97% to 23,255.05, while the Sensex dropped 0.76% to 76,916.23. Asian markets also saw a sharp decline, with the MSCI Asia ex-Japan index falling by approximately 3%. All 13 major sectors in the Indian stock market recorded losses, with small- and mid-cap stocks falling 1.9% and 1.3%, respectively. Additionally, the Indian rupee weakened to below 87 per US dollar for the first time.

Technical Outlook on Nifty 50

Market Turmoil: Sensex During the Budget session, the Nifty 50 experienced considerable volatility, forming a small-bodied candle on the daily chart, indicating market indecision. The index has a crucial support level at 23,280, and maintaining this level could sustain a positive trend. In the short term, Nifty 50 could move toward 23,700–24,000. However, if it falls below 23,280, it may trigger selling pressure.

Open Interest Analysis: The current weekly options series shows strong CALL writing, with a net addition of 2.82 crore contracts compared to 1.2 crore contracts in PUTs. The highest CALL open interest is at the 24,000 level, while the highest PUT open interest is at 23,000, indicating a defined trading range.

Stock Recommendations for the Week

1. Can Fin Homes Ltd

• Buy at: ₹668
• Target: ₹710
• Stop Loss: ₹648
• Analysis: The stock has formed a Piercing Line pattern on the daily chart, signaling a potential bullish reversal. It has also tested support at its previous swing low, forming a double bottom. The RSI shows a bullish crossover with positive divergence, strengthening the chances of an upward movement.

2. Cochin Shipyard Ltd

• Buy at: ₹1,537
• Target: ₹1,670
• Stop Loss: ₹1,478
• Analysis: The stock has broken above a falling trendline on the daily chart, indicating the end of its bearish phase. Additionally, it has closed above the 21-day EMA, reinforcing the bullish outlook. The RSI is in a bullish crossover, suggesting strong momentum.

3. Power Grid Corporation of India

• Buy at: ₹302
• Target: ₹320
• Stop Loss: ₹292
• Analysis: A breakout above a falling trendline on the daily chart indicates a shift to a bullish trend. The stock has also closed above its 21-day EMA, further validating the positive momentum. RSI is in a bullish crossover, pointing to strong short-term strength.

Market Strategy

• Resistance Level: Strong CALL writing at 23,500 suggests a resistance zone, meaning Nifty 50 may struggle to breach this level.
• Potential Downside: A fall below 23,450 could intensify selling pressure.
• Trade Recommendation: Buy Nifty 50 6FEB 23300PE above ₹90, with a target of ₹150 and a stop loss at ₹59.

Dow Futures Drop Over 450 Points as Trump Imposes New Tariffs on Key Trade Partners

Market Turmoil: Sensex Stock futures declined sharply on Sunday night as investors reacted to fresh U.S. tariffs on major trading partners, raising concerns about economic growth and corporate earnings.

Futures linked to the Dow Jones Industrial Average fell 463 points (1%), while S&P 500 futures declined 1.6%, and Nasdaq-100 futures dropped 2.1%.

On Saturday, President Donald Trump imposed a 25% tariff on imports from Mexico and Canada, along with a 10% levy on goods from China. The U.S. conducts approximately $1.6 trillion in trade with these three nations. In response, Canada announced retaliatory tariffs, while Mexico indicated it would consider imposing duties on U.S. imports. China, meanwhile, declared its intention to challenge the tariffs at the World Trade Organization (WTO).

Tobin Marcus, head of U.S. policy and politics at Wolfe Research, noted that markets might now need to take Trump’s tariff policies more literally, which could lead to further volatility.

Market Reactions

• Oil and gasoline futures rose following the tariff announcement.
• The U.S. dollar strengthened as investors sought safer assets.

Earnings & Economic Data to Watch

Market Turmoil: Sensex This week marks a significant period for fourth-quarter earnings, which could provide insights into how businesses are managing the tariff situation and broader market conditions. Over 120 companies in the S&P 500 are set to release earnings, including Alphabet, Amazon, and Palantir, as well as consumer sector leaders like Walt Disney and Mondelez.

Additionally, the January nonfarm payrolls report, scheduled for release on Friday, will offer key insights into the labor market. Economists surveyed by Dow Jones anticipate 175,000 new jobs were added last month, with the unemployment rate expected to remain at 4.1%.

Stock Market Performance Recap

Market Turmoil: Sensex Despite recent volatility, U.S. stock indexes posted gains in January:

• S&P 500: +2.7%
• Nasdaq Composite: +1.6%
• Dow Jones Industrial Average: +4.7% (the strongest performer)

With growing concerns over tariffs and their potential economic impact, investors are bracing for a turbulent start to February.

Stock Market Update: Sensex and Nifty Take a Hit Amid Global Tensions and Budget Disappointments, But Maruti and Eicher Motors Show Resilience

Market Turmoil: Sensex The Indian stock market is under pressure today, with the Sensex dropping over 500 points and the Nifty50 down nearly 200 points. The broader market is also taking a hit, with the BSE MidCap and SmallCap indices down over 1.4%.

Key drivers of the decline:

• Global Market Weakness: Asian markets are down sharply after Donald Trump announced new tariffs—25% on imports from Canada and Mexico and 10% on Chinese goods. This is sparking fears of a renewed trade war.
• Sectoral Sell-Off: The Metal sector is the worst hit, falling over 3%, followed by Realty, IT, and Financial Services. Stocks like Vedanta, SAIL, Hindalco, JSW Steel, and Tata Steel are seeing significant declines.
• Budget Disappointments: Investors seem unimpressed with Budget 2025, as oil marketing companies (BPCL, IOC, HPCL) are falling sharply, hitting 52-week lows due to the lack of expected stimulus.

However, there are some bright spots:

• Maruti Suzuki, Eicher Motors, and TVS Motor are seeing gains on strong sales and outlook.
• Paytm Cloud Technologies is acquiring a 25% stake in Brazilian fintech startup Dinie for $1M, a strategic move for expansion.

With the India VIX up 5%, volatility is increasing. Do you see any buying opportunities in this dip, or are you staying cautious for now?

Market Update: Sensex and Nifty Decline Amid Trump’s Tariffs and Rupee Weakness; Eicher Motors and Adani Power Stand Out

Market Turmoil: Sensex The Indian stock market is reacting negatively to Trump’s new tariffs on Canada, Mexico, and China, which have caused a sell-off in global markets. Nifty 50 has dropped below 23,300, with major contributors to the decline being L&T and Reliance. The rupee has weakened past 87 per dollar, marking a historic low.

Key highlights:

• Sensex & Nifty Down: Both indices are facing declines due to weak global cues.
• Major Losers: Vedanta and other metal stocks are taking a hit as commodity prices drop.
• Adani Power Upgraded: Jefferies has given a “Buy” rating with a 30% upside potential.
• SBI Mutual Fund Launch: A new Nifty IT Index Fund is set to launch.
• Rupee Falls: The currency has crossed 87 per USD amid trade tensions.
• Stock Recommendations: Buy Eicher Motors & Interglobe Aviation; Sell HCLTech & Gujarat Gas.

Market Turmoil: Sensex Global markets are also reeling from the tariff news, with US futures and Asian markets down. Are you looking for any specific insights on this?