Pre-Opening Update: GIFT Nifty Indicates 300-points higher opening; here are the key triggers to watch on 1 April 2026

Pre-Market Update at 7:53 AM: The Indian benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, tracking a strong rally in global markets amid growing optimism over a potential end to the U.S.–Iran conflict. As of 7:30 am, GIFT Nifty was trading around the 22,776 level, up by nearly 300 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market.

Global cues remain supportive, with Asian markets trading in positive territory and Wall Street witnessing a sharp rally overnight. The S&P 500, Nasdaq, and Dow Jones posted their biggest single-day gains since May 2025, boosting investor sentiment across global equities.

From April 1, 2026, higher Securities Transaction Tax (STT) on futures and options (F&O) has come into effect, as announced in Budget 2026 to curb speculative trading. STT on futures has been increased to 0.05 per cent from 0.02 per cent, while options STT has been raised to 0.15 per cent from 0.1 per cent. This move significantly raises trading costs and nearly doubles breakeven levels for futures traders, potentially impacting volumes and putting pressure on foreign portfolio investor (FPI) flows.

Asian markets rebounded sharply on Wednesday amid hopes of de-escalation in the U.S.–Iran conflict. Japan’s Nikkei 225 surged 3.96 per cent and the Topix gained 3.61 per cent. South Korea’s Kospi jumped 6.26 per cent, while the Kosdaq rose 5.28 per cent. Hong Kong’s Hang Seng index was also trading over 2 per cent higher.

Among key global triggers, U.S. President Donald Trump indicated that American military operations against Iran could end within the next two to three weeks, suggesting that a formal agreement may not be necessary for de-escalation. Meanwhile, Japan’s manufacturing activity continued to expand in March, with the final S&P Global Manufacturing PMI at 51.6, easing from February’s 53.0 but slightly above the preliminary estimate of 51.4.

Crude oil prices remained elevated amid geopolitical tensions. Brent crude gained 2.37 per cent to USD 104.51 per barrel, while U.S. WTI crude rose 1.45 per cent to USD 98.65. The U.S. dollar remained largely steady, with the dollar index slipping 0.03 per cent to 99.70.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.77. On the Put side, the 22,500 strike holds significant open interest, making it a key support level, followed by 22,300. On the Call side, the 23,000 strike shows strong resistance, indicating that upside may face selling pressure while 22,500 remains a crucial downside level.

Technically, Friday’s low of 22,800 is likely to act as immediate resistance for the Nifty 50. A fall below 22,500 could open the door for a test of 22,250. Immediate support levels are placed at 22,460 and 22,283.

There are no stocks in the F&O ban for April 1.

Institutional flows indicate continued selling pressure from foreign investors. On March 30, FIIs sold equities worth Rs 11,163.06 crore, while DIIs bought shares worth Rs 14,894.72 crore. For March 2026, FIIs recorded a total outflow of Rs 122,540.41 crore and have remained net sellers for 21 consecutive sessions.

The Indian stock market remained closed on March 31 due to Mahavir Jayanti. On Monday, markets ended sharply lower amid geopolitical concerns. The Sensex fell 1,635.67 points, or 2.22 per cent, to close at 71,947.55, while the Nifty 50 declined 488.20 points, or 2.14 per cent, to settle at 22,331.40.

On Wall Street, U.S. markets closed significantly higher on Tuesday. The Dow Jones surged 2.49 per cent to 46,341.51, the S&P 500 rose 2.91 per cent to 6,528.52, and the Nasdaq jumped 3.83 per cent to 21,590.63. Despite the rally, the indices ended the first quarter in the red.

Among major stocks, Nvidia rose 5.6 per cent, Alphabet gained 5.1 per cent, Meta surged 6.7 per cent, Microsoft advanced 3.12 per cent, Apple climbed 2.90 per cent, Amazon added 3.66 per cent, and Tesla increased 4.64 per cent.

In commodities, gold prices extended gains for a third straight session, rising 0.47 per cent to USD 4,694.66 per ounce, while silver declined 0.77 per cent to USD 74.55 per ounce.

Disclaimer: The article is for informational purposes only and not investment advice.