Author: Rasmita Jena

U.S. stock futures fell a bit, and people are buying more dollars and gold. This happened after President Donald Trump said he would add 25% tariffs on all steel and aluminum imports to the U.S. Futures for the S&P 500 and Nasdaq 100 went down about 0.2% on Tuesday. The dollar went up a little, and gold prices rose, hitting over $2,921 for the first time.

Asian stocks didn’t change much, with Australian and South Korean shares showing slight increases after a drop the day before. Japan’s markets were closed for a holiday, meaning no trading for U.S. Treasury bonds in Asia after quiet movements in U.S. yields. Hong Kong’s stock futures remained steady.

Trump’s new tariffs will apply to all countries, even major ones like Mexico and Canada, starting March 4, although Australia might be exempt. He plans to announce more tariffs this week on countries that tax U.S. imports.

Hartmut Issel from UBS Wealth Management told Bloomberg that we can’t ignore the tariffs. He suggests a mix of U.S. stocks, high-quality bonds, and gold to help protect against tariff risks.

Besides the trade situation, investors are also looking at important inflation data this week, along with Fed Chair Jerome Powell’s speech in Congress. Recent data showed expected inflation rates staying at 3%.

On Wall Street, technology stocks surged again. Nvidia’s stock jumped 15% over five days, and Meta Platforms rose for the 16th day. Steel companies like U.S. Steel Corporation and Alcoa also saw stock rises.

Hedge funds bought a lot of U.S. stocks last week, turning positive after better-than-expected earnings, making it the largest buying spree in three years. They bought the most in the tech sector.

On Monday, the S&P 500 rose 0.7%, and the Nasdaq 100 climbed 1.2%. The yield on 10-year Treasuries held steady at 4.5%. The Bloomberg Dollar Index also gained 0.2%, and gold went over $2,900 an ounce. Oil prices rose as concerns about a supply glut eased.

Despite the tariffs, stock prices have been doing well, but Deutsche Bank’s strategists warn that trade tensions could cause pullbacks. In the past, similar situations have led to quick but temporary sell-offs, often recovering before peace is reached. Stocks usually drop 6%-8% and take a few weeks to bounce back.

Christian Floro from Principal Asset Management noted that unpredictability in policies is a big risk for investors. To handle this environment, he recommends having a diverse portfolio to minimize risks and seize opportunities as situations change.

In just four days, investors lost a massive ₹7.68 lakh crore because of a big drop in the stock market. This happened as foreign funds pulled out their money and worries about new tariffs began to trouble investors. The BSE Sensex, a major stock market index in India, fell by 1,272 points, which is about 1.61%. The total value of companies listed on the Bombay Stock Exchange (BSE) dropped to ₹4,17,82,573.79 crore (or $4.77 trillion).

The market took a hit after US President Donald Trump announced plans to put new tariffs on steel and aluminum imports, raising concerns about trade. On Monday, the Sensex fell by 548 points, reaching a weekly low of 77,311.80 points. During the day, it even fell further to 77,106.89 points.

Investors felt nervous as companies reported lower earnings and fears about a trade war grew. Some stocks like Power Grid, Tata Steel, Zomato, and Tata Motors performed poorly. However, companies like Kotak Mahindra Bank and Bharti Airtel did better.

The uncertainty around US tariffs made investors very cautious. Many are choosing to invest in safer options like gold. The small-cap index dropped by 2.25%, while the mid-cap index fell by 2.06%. All sectors on the BSE ended lower, with real estate and metals seeing the biggest declines.

In total, 3,032 stocks went down, while only 1,070 rose, and 123 stayed the same.

On Monday, the Nifty index started off slowly and faced a lot of selling pressure, ending the day at 23,382. The India VIX, which measures market volatility, increased by 5.55% to 14.45, suggesting that investors are feeling uncertain.

From a technical point of view, the Nifty formed a “red candle,” which usually shows weakness in the market. However, it found some support close to the 21-day simple moving average (SMA) at about 23,290. If the index can rise, it might hit the 50-day SMA resistance at around 23,740, and then potentially reach 23,800. But if it stays below 23,290, more drops could happen.

Hrishikesh Yedve from Asit C. Mehta Investment Intermediates advises traders to keep an eye on these important levels. The highest open interest (OI) for call options is at the 23,600 and 23,500 strike prices, while the most significant put option OI is at 23,300, followed by 23,400.

What Analysts Say:

– Jatin Gedia, Mirae Asset Sharekhan: The Nifty has been down for four straight days and has tested a key support level at 23,300, which could determine whether it rises back to 24,000. The daily momentum indicator shows a buy signal, suggesting this downturn may be a good buying chance.

– Om Ghawalkar, Share.Market: The market was jumpy, hitting a low of 23,316. In the final hour, it bounced up to close at 23,381. The Nifty struggled at the 50-SMA last week but found support at the 21-SMA. The options analysis shows strong resistance at 24,000 and support at 22,500.

– Rupak De, LKP Securities: The Nifty’s recent fall is concerning, and sentiment is weak now that it is below the 21 EMA line. If it goes down below 23,350, it could further drop to 23,000. There’s resistance at 23,550.

– Nagaraj Shetti, HDFC Securities: A long bearish candle formed, signaling bad news. If the Nifty goes below 23,220, it could wipe out recent upward trends and lead to a bigger drop. The overall trend is negative, and immediate resistance is at 23,500.

Disclaimer: The opinions and views in this article belong to the experts and do not reflect the view of Thellv.news