Pre-Market Update: Nifty 50 Set for Over 600 Point Gap-Up Start on April 8 as U.S.-Iran Ceasefire Triggers 10% Oil Crash; RBI Monetary Policy in Focus

Pre-Market Update at 7:42 AM: Indian equity benchmarks are set for a strong gap-up opening on Wednesday, April 8, tracking a global risk-on rally after a ceasefire agreement between the U.S. and Iran led to a sharp correction in crude oil prices. As of 7:18 am, GIFT Nifty hovered around 23,827, up over 690 points from the previous close of Nifty futures, indicating a robust start for the Nifty 50 and Sensex.

The positive sentiment follows a significant geopolitical development, as the U.S. and Iran agreed to a two-week ceasefire. U.S. President Donald Trump paused planned strikes on Iran after Tehran proposed a 10-point framework for negotiations. Talks between the two nations are scheduled for April 10 in Islamabad. As part of the agreement, Iran assured safe passage through the Strait of Hormuz, easing concerns over global oil supply disruptions.

Crude oil prices reacted sharply to the development, with Brent crude falling 10 per cent to USD 93 per barrel and U.S. West Texas Intermediate (WTI) declining 10 per cent to USD 90 per barrel. The steep fall in oil prices boosted global equities, particularly in Asia, while U.S. stock futures also traded higher on improved risk appetite.

Back home, investor focus will also be on the Reserve Bank of India’s monetary policy announcement scheduled for today. The Monetary Policy Committee (MPC), led by RBI Governor Sanjay Malhotra, is widely expected to keep the repo rate unchanged at 5.25 per cent while maintaining a neutral policy stance.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.26, indicating a bullish bias. On the Put side, significant open interest is concentrated at the 23,100 strike, suggesting strong support. On the Call side, heavy open interest is seen between the 23,150 and 23,500 strikes, marking this zone as a resistance band. However, given the strong global cues, the Nifty 50 is likely to open above these levels.

Technically, immediate resistance for the Nifty 50 is placed at 24,000, followed by 23,300. On the downside, key support levels are seen at 22,750 and 23,575.

In the derivatives segment, Sammaan Capital remains under the F&O ban for April 8.

Institutional activity remained mixed in the previous session. Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs 8,692.11 crore, marking their 25th consecutive session as net sellers. Domestic Institutional Investors (DIIs), however, provided support, purchasing shares worth Rs 7,979.50 crore.

On Tuesday, Indian markets extended gains for the fourth straight session. The Sensex rose 509.73 points, or 0.69 per cent, to close at 74,616.58, while the Nifty 50 gained 155.40 points, or 0.68 per cent, to settle at 23,123.65.

Globally, U.S. stock futures surged on the ceasefire news, with Dow Jones futures rising 718 points or 1.5 per cent. S&P 500 futures advanced 1.6 per cent, and Nasdaq 100 futures climbed 1.7 per cent. In the previous session, the Dow Jones Industrial Average declined 0.18 per cent, while the S&P 500 and Nasdaq Composite posted marginal gains.

Among key stocks, Broadcom surged 6.21 per cent and Intel rose 4.19 per cent, while Apple declined 2.07 per cent and Tesla fell 1.75 per cent. In healthcare, UnitedHealth jumped 9.4 per cent, Humana gained 7.9 per cent, and CVS Health advanced 6.7 per cent.

In the commodities market, gold prices rose 2 per cent to USD 4,800 per ounce, while silver surged 4.35 per cent to USD 76.23 per ounce, as investors reacted to the geopolitical developments.

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