Based on the market performance on April 3, 2025, and considering recent developments, Here are some stocks to consider adding to your watchlist for April 4, 2025:
Stocks to Watch:
NIFTY 50 and Sectoral Performance
NIFTY 50 Performance
- Closing Price: 23,250.10 (-0.35%)
- Support Levels: 23,470, 23,411, and 23,315
- Resistance Levels: 23,662, 23,721, and 23,817
Sectoral Highlights
- Top-Performing Sectors: Pharmaceuticals (+5%), Energy (+2.1%)
- Underperforming Sectors: IT (-4.2%), Banking (-1.5%)
The Nifty Pharma index posted its largest intra-day gain in over four years following the U.S. administration’s exemption of pharmaceutical products from new tariffs. This led to a significant surge in stocks like Dr. Reddy’s, Gland Pharma, Cipla, and Sun Pharma.
On the other hand, IT stocks faced heavy selling pressure as fears of a potential U.S. recession weighed on investor sentiment, with companies like TCS, Infosys, and HCL Technologies seeing declines.
Top Stocks to Watch for April 4, 2025
1. Power Grid Corporation of India Ltd. (POWERGRID)
- Last Close: ₹299.15 (+4.34%)
- Support Level: ₹285
- Resistance Level: ₹305
- Rationale: Power Grid outperformed the broader market, driven by strong quarterly results and increasing demand for energy infrastructure projects. The stock is well-positioned for further gains if it holds above key support levels.
2. Sun Pharmaceutical Industries Ltd. (SUNPHARMA)
- Last Close: ₹1,050 (+3%)
- Support Level: ₹1,020
- Resistance Level: ₹1,080
- Rationale: Sun Pharma benefited from the recent exemption of pharmaceutical products from U.S. tariffs, improving investor confidence. The stock has strong momentum and may continue its uptrend if it breaks above resistance.
3. Cipla Ltd. (CIPLA)
- Last Close: ₹980 (+4.5%)
- Support Level: ₹950
- Resistance Level: ₹1,000
- Rationale: Cipla is another beneficiary of the U.S. tariff exemption, and strong institutional buying has supported the stock. A breakout above ₹1,000 could push it towards higher targets.
4. Tata Consultancy Services Ltd. (TCS)
- Last Close: ₹3,403.30 (-3.97%)
- Support Level: ₹3,350
- Resistance Level: ₹3,500
- Rationale: TCS faced significant selling pressure due to U.S. recession fears. If the stock stabilizes near its support, it may present a buying opportunity for long-term investors.
5. Infosys Ltd. (INFY)
- Last Close: ₹1,497 (-3.41%)
- Support Level: ₹1,470
- Resistance Level: ₹1,530
- Rationale: Infosys also struggled due to weak global sentiment in the IT sector. Traders should watch for any signs of a reversal near the support level.
Global Market Influences to Watch
1. U.S. Tariffs and Economic Impact
The United States recently imposed a 26% tariff on Indian imports, which is relatively lower compared to other Asian countries like China (54%) and Vietnam (46%). However, the Indian pharmaceutical industry received an exemption, leading to a rally in pharma stocks.
This exemption helps maintain India’s competitive edge in the U.S. market, allowing companies like Dr. Reddy’s, Sun Pharma, and Cipla to benefit from continued export demand.
2. U.S. Recession Concerns
With increasing fears of a slowdown in the U.S. economy, the IT sector has been negatively impacted. Large-cap IT companies like TCS, Infosys, and HCL Tech depend heavily on U.S. clients for revenue, leading to a sell-off in these stocks.
If recessionary signals intensify, Indian IT companies may face further headwinds, pressuring their stock prices.
3. USD to INR Exchange Rate
- Closing Rate: ₹85.43 per USD (+0.08%)
- Impact: A slight appreciation in the Indian rupee supports capital inflows but could limit export growth for IT and pharma firms.
Technical Analysis and Trading Strategies
NIFTY 50 Trading Plan
- Bullish Scenario: If NIFTY 50 holds above 23,470, we may see a recovery towards 23,662 – 23,817 levels.
- Bearish Scenario: A break below 23,315 could trigger further downside towards 23,150 – 23,000.
Intraday and Swing Trading Opportunities
- Bullish Stocks: Cipla, Sun Pharma, Power Grid (Buy on dips with stop-loss at immediate support)
- Bearish Stocks: Infosys, TCS (Sell on rallies with stop-loss near resistance levels)
Options Trading Strategy
For traders in the options segment:
- Bullish Traders: Consider NIFTY 23,500 CALL options if NIFTY sustains above 23,470.
- Bearish Traders: Consider NIFTY 23,200 PUT options if NIFTY breaks below 23,315.
Market Outlook for April 4, 2025
Based on current trends and global cues, the Indian market is likely to remain volatile, with sector-specific movements expected.
- Bullish Sectors: Pharmaceuticals, Energy
- Bearish Sectors: IT, Banking
- Key Events to Watch: Global recession indicators, U.S. policy updates, and RBI monetary policy hints
Trading Strategy: Investors should focus on pharma stocks for upside potential, while traders should be cautious in IT and banking sectors.
Conclusion of Stocks to Watch
The upcoming trading session on April 4, 2025, presents mixed opportunities for investors and traders. While pharmaceutical stocks continue to show strength, IT and banking stocks remain under pressure due to macroeconomic concerns. By closely monitoring support and resistance levels, traders can effectively navigate market movements.
As always, market conditions can change rapidly, and it is crucial to stay updated with real-time news and technical indicators before making trading decisions.
-Stocks to Watch, Market Outlook, Intraday and Swing Trading Opportunities, Options Trading Strategy, Technical Analysis and Trading Strategies, NIFTY 50 and Sectoral Performance, Global Market
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