Pre-Market Update: Nifty 50 Set to Open Lower on April 6 Amid U.S.-Iran Tensions, Crude Above USD 110

Pre-Market Update at 7:42 AM: The Indian benchmark indices, Sensex and Nifty 50, are likely to open on a weaker note on Monday, April 6, tracking mixed global cues. Investor sentiment remains under pressure amid escalating tensions between the U.S. and Iran in the Middle East, along with rising crude oil prices.

Asian markets traded mostly higher, even as geopolitical concerns persisted. Japan’s Nikkei 225 gained 1.21 per cent and the Topix rose 0.54 per cent. South Korea’s Kospi advanced 1.05 per cent, while the Kosdaq declined 0.90 per cent. Markets in Hong Kong, China, and Taiwan remained closed due to a holiday.

In the U.S., markets ended on a mixed note on Thursday, although all three major Wall Street indices posted strong gains for the week. The Dow Jones Industrial Average slipped 0.13 per cent to 46,504.67, while the S&P 500 edged up 0.11 per cent to 6,582.69. The Nasdaq Composite rose 0.18 per cent to 21,879.18. For the week, the S&P 500 gained 3.36 per cent, the Nasdaq climbed 4.44 per cent, and the Dow advanced 2.96 per cent. Among key stocks, Nvidia rose 0.93 per cent, Microsoft added 1.11 per cent, and AMD surged 3.47 per cent, while Tesla declined sharply by 5.42 per cent.

As of 7:25 am, GIFT Nifty was trading around the 22,618 level, down over 24 points from the previous close of Nifty futures, indicating a negative start for domestic markets.

Geopolitical developments remain a key concern. U.S. President Donald Trump issued a fresh warning to Iran, urging it to reopen the Strait of Hormuz. He indicated potential severe consequences, including targeting critical and energy infrastructure, if Iran fails to comply or agree to a truce.

On the macroeconomic front, the U.S. labour market showed resilience. Nonfarm payrolls increased by 178,000 jobs in March, the highest since December 2024, compared to a revised decline of 133,000 jobs in February.

Meanwhile, Japanese government bond yields climbed to near three-decade highs. The 10-year JGB yield rose 2 basis points to 2.400 per cent, its highest since February 1999, while the five-year yield increased to 1.815 per cent.

Crude oil prices moved higher amid concerns of supply disruptions due to Middle East tensions. Brent crude futures rose 1.6 per cent to USD 110.74 per barrel, while WTI crude futures gained 0.36 per cent to USD 111.94 per barrel. The U.S. dollar remained steady, with the dollar index at 100.2.

Back home, Banking stocks including HDFC Bank, Yes Bank, IDBI Bank, Kotak Mahindra Bank, Union Bank of India, and RBL Bank are likely to be in focus after announcing their Q4 business updates ahead of the Q4 FY26 earnings season.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.16, indicating a mildly bullish undertone. Among nearby strikes, the 22,500 level has significant Put open interest, suggesting support, while the highest Call open interest is concentrated at the 23,000 strike, indicating strong resistance.

Technically, 22,470 is expected to act as immediate support for the Nifty 50, while 22,950 may serve as resistance. A sustained move above 22,950 could push the index towards 23,000. On the downside, a break below 22,500 may lead to further correction towards 22,300.

There are no stocks in the F&O ban list for April 6.

On the institutional front, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 9,931.13 crore on April 2, marking their 23rd consecutive session of selling. Domestic Institutional Investors (DIIs) bought shares worth Rs 7,208.41 crore during the same session.

The Indian stock market was closed on Friday on account of Good Friday. On Thursday, markets ended higher for the second consecutive session. The Sensex rose 185.23 points, or 0.25 per cent, to close at 73,319.55, while the Nifty 50 gained 33.70 points, or 0.15 per cent, to settle at 22,713.10.

In commodities, gold prices declined over 1 per cent due to a stronger dollar and reduced expectations of U.S. Federal Reserve rate cuts. Spot gold fell 1.06 per cent to USD 4,627.14 per ounce, while silver declined 1.17 per cent to USD 72.15 per ounce.

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