Mecklai Graph of The Week

Is It Good Time To Invest In Indian Equities?

16 Apr, 2025
Graph of the week

Nifty has tested the major support zone of 21700-21800 that is approximately a fall of 17% from 26777 high seen in September. It is highly likely this acts as the base for short term where in next resistance is at 23870. From September 2024 nifty has been trading in a downward sloping channel as FIIs/FPIs exited in favour of the US and China markets. Further losses began after President Trump won the Presidential elections and promised Tariffs on all trading partners. The upheaval in the markets were seen in all asset categories including the USDINR exchange rate.


Markets are seeing a relief rally after RBI turned accommodative and cut interest rate by 25 bps. In addition, players are seeing some relief on the Tariff front, as US and Indian authorities are seen negotiating a deal. President Tump also paused reciprocal tariffs for 90 days giving room for negotiations with trading partners.


Nifty index has been opening with a gap up in recent sessions. However, in our opinion, the rally is not showing strength. We expect a higher probability of a pull back from the resistance. Key resistance is seen around 23800-23900.


It may not be the right time to invest in equities. But can add on considerable corrections.