Nifty Outlook Tomorrow -India imposes tariff on Steel imports

Nifty 50 Outlook for April 22, 2025: Will the Rally Continue or See a Pause?

India’s decision to impose a 12% tariff on select steel imports has stirred the markets, offering potential support to domestic steel stocks. As traders gear up for April 22, all eyes are on the Nifty 50's next move—especially with technical indicators hinting at an overbought zone.

Steel Tariffs Could Boost Select Sectors

The Indian government's move to tax certain steel imports is seen as a protective measure to shield domestic producers from cheaper global supplies, particularly from countries like China, Japan, and South Korea. Stocks like Tata Steel, JSW Steel, and SAIL may gain from this policy, potentially lifting the index in the short term.

Nifty 50 Technical Indicators

• Overbought Condition: The Nifty's RSI (Relative Strength Index) is currently hovering around 75, signaling an overbought zone after a strong 7–8% rally over the past two weeks.

• Resistance Zone: Strong resistance is visible near 24,000, a key psychological and Fibonacci retracement level.

• Support Level: On the downside, 23,500–23,600 is expected to offer support in case of a pullback.

Volatility & Market Sentiment

• The India VIX, a measure of market volatility, has been declining steadily, suggesting lower fear and a relatively stable sentiment among traders.

• Analysts are suggesting a "buy-on-dips" strategy, especially if Nifty holds above key support zones.

What to Expect on April 22, 2025

While the broader market outlook remains positive, the current overbought condition could lead to profit booking in the short term. However, strength in sectors like steel, and overall declining volatility, support the possibility of further gains—albeit at a slower pace.

Bottom Line

The Nifty 50 could see a mildly positive opening on April 22, driven by steel sector optimism. However, overbought signals and key resistance levels may cap sharp upside moves. Traders are advised to proceed cautiously, keeping an eye on sector-specific trends and global cues.

---

Keywords: