Pre-Market Update: Nifty, Sensex Likely to Open Positive on Wednesday, Asian Markets Rally on U.S.-Iran Peace Hopes
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As of 7:21 am, GIFTY Nifty was trading around the 23,109 level, up by nearly 180 points from the previous close of Nifty futures, indicating a strong start for the domestic indices.
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Pre-Market Update at 7:44 AM: The Indian stock market benchmarks, Sensex and Nifty 50, are likely to open on a positive note on Wednesday, March 25, supported by a rally in Asian markets amid reports of a potential U.S. plan to end the Middle East conflict.
As of 7:21 am, GIFTY Nifty was trading around the 23,109 level, up by nearly 180 points from the previous close of Nifty futures, indicating a strong start for the domestic indices. Asian markets traded higher, while U.S. stock futures also advanced on optimism surrounding a possible resolution to the U.S.–Iran war.
Asian markets saw broad-based gains. Japan’s Nikkei 225 rallied 2.5 per cent, while the Topix index gained 2.4 per cent. South Korea’s Kospi jumped 2.5 per cent and the Kosdaq rose 1.6 per cent. Hong Kong’s Hang Seng index also advanced 1.27 per cent, reflecting improved global sentiment.
Among key triggers, developments in the U.S.–Iran conflict remain in focus. U.S. President Donald Trump stated that he has sent a peace proposal to Iran, expressing hope of ending the nearly month-long conflict. However, reports also suggest that the U.S. military is preparing to deploy at least 2,000 troops from the 82nd Airborne Division to the Middle East. Meanwhile, Tehran indicated it would allow “non-hostile” oil vessels to pass through the Strait of Hormuz.
In macroeconomic data, U.S. business activity slowed to an 11-month low in March. According to S&P Global, the flash U.S. Composite PMI Output Index slipped to 51.4 from 51.9 in February.
The Bank of Japan’s January policy meeting minutes showed that several board members supported further interest rate hikes without a fixed timeline, while some emphasised the need for timely action amid rising inflation.
Crude oil prices declined sharply following reports of a U.S. peace proposal to Iran. Brent crude fell 1.68 per cent to USD 94 per barrel, while U.S. West Texas Intermediate (WTI) dropped 0.73 per cent to USD 86 per barrel.
The U.S. dollar index, which tracks the greenback against a basket of six currencies, slipped 0.1 per cent to 99.13.
From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.05. On the Put side, the 22,900 and 22,800 strikes witnessed meaningful additions in open interest, while 22,500 holds substantial open interest, making it a key support level. The 22,800 level is also emerging as an important near-term support.
On the Call side, significant open interest concentration was observed at the 23,000 and 23,500 strikes, indicating strong resistance zones. This suggests that while the downside is cushioned around 22,800, any upside could face selling pressure near higher levels.
Technically, Friday’s high of 23,350 is expected to act as immediate resistance for the Nifty 50. A fall below 22,900 could trigger further downside towards 22,800 and 22,650 levels.
In the derivatives segment, Sammaan Capital and SAIL remain under the F&O ban list for March 25.
Institutional flows remain a concern. On March 24, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 8,009.56 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 5,867.15 crore. FIIs have been net sellers for the past 18 consecutive sessions.
On Tuesday, Indian markets ended with strong gains, tracking global cues. The Sensex surged 1,372.06 points, or 1.89 per cent, to close at 74,068.45, while the Nifty 50 rose 399.75 points, or 1.78 per cent, to settle at 22,912.40.
However, Wall Street closed lower in a volatile session. The Dow Jones Industrial Average declined 0.18 per cent to 46,124.06. The S&P 500 fell 0.37 per cent to 6,556.37, and the Nasdaq Composite dropped 0.84 per cent to 21,761.89. Among stocks, Nvidia slipped 0.27 per cent, Microsoft fell 2.73 per cent, and Amazon declined 1.43 per cent. Tesla gained 0.57 per cent, Jefferies rose 2.5 per cent, while Estée Lauder plunged 9.8 per cent.
In commodities, gold and silver prices surged. Spot gold jumped 2.6 per cent to USD 4,586.76 per ounce, while spot silver rose 4 per cent to USD 74 per ounce, supported by a softer U.S. dollar.
Disclaimer: The article is for informational purposes only and not investment advice.