Pre-Market Update: Sensex, Nifty 50 to Open Higher on March 24; GIFTY Nifty Signals Over 300-Point Gap-Up

Pre-Market Update at 7:53 AM: India’s benchmark indices, the Sensex and Nifty 50, are likely to open higher on Tuesday, tracking a global market rally amid signs of easing tensions in the U.S.-Iran conflict. As of 7:26 am, GIFTY Nifty was trading around the 22,836 level, up by nearly 371 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

Asian markets traded higher on Tuesday, following signs of de-escalation in the U.S.-Iran war. Japan’s Nikkei 225 gained 0.59 per cent, while the Topix rose 1.49 per cent. South Korea’s Kospi and Kosdaq traded flat. The Hong Kong Hang Seng index was up 0.7 per cent. Meanwhile, U.S. equities closed higher overnight after Washington delayed planned strikes on Iranian power plants, boosting investor sentiment.

In the latest development on the U.S.-Iran conflict, U.S. President Donald Trump extended the deadline for Iran to reopen the Strait of Hormuz and delayed strikes on Iranian power plants by five days. He stated that U.S. envoys are in talks with a “respected” Iranian leader and suggested Iran may be open to a deal, although Iranian officials denied such negotiations.

On the regulatory front, the SEBI board approved a broad set of proposals, including easing fund settlement norms for foreign portfolio investors (FPIs) and revising regulatory frameworks for market intermediaries. It also cleared recommendations related to conflict of interest and disclosure norms for SEBI officials.

Japan’s economic data showed moderation in March, with the S&P Global flash manufacturing PMI easing to 51.4 from 53.0 in February. The services PMI slipped to 52.8 from 53.8, while the composite PMI declined to 52.5 from 53.9, marking the slowest expansion in three months.

The U.S. dollar index rose nearly 0.2 per cent to 99.35 after dipping to a two-week low in the previous session.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.69. On the Put side, the 22,300 and 22,000 strikes saw meaningful addition in open interest, with 22,000 emerging as a key support level. The 22,300 level also holds significant open interest, making it another crucial support zone. On the Call side, open interest was concentrated from 22,500 to 23,000, indicating strong resistance at higher levels. This suggests that any upside may face selling pressure, while 22,300 remains a key level on the downside.

Technically, Monday’s high of 22,856 is likely to act as immediate resistance for the Nifty. A fall below 22,700 could trigger a move towards 22,400 and 22,300. On the upside, 23,075 is seen as the next resistance level.

Sammaan Capital and SAIL will remain in the F&O ban list for March 24.

On March 23, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 10,414.23 crore. Domestic Institutional Investors (DIIs) bought shares worth Rs 12,033.97 crore. FIIs have been net sellers for 17 consecutive trading sessions.

On Monday, Indian markets ended sharply lower amid concerns over the prolonged U.S.-Iran conflict. The Sensex fell 1,836.57 points, or 2.46 per cent, to close at 72,696.39. The Nifty 50 declined 601.85 points, or 2.60 per cent, to settle at 22,512.65.

U.S. markets closed higher on Monday after the delay in military action against Iran. The Dow Jones Industrial Average surged 631 points, or 1.38 per cent, to 46,208.47. The S&P 500 rose 1.15 per cent to 6,581.00, while the Nasdaq Composite gained 1.38 per cent to 21,946.76.

Among stocks, Nvidia rose 1.59 per cent, Apple gained 1.41 per cent, and Tesla jumped 3.5 per cent. Airline stocks rallied, with Alaska Air and United Airlines rising over 4 per cent each, and American Airlines up 3.66 per cent. Cruise stocks also advanced, with Norwegian Cruise Line up 6.17 per cent, while Carnival and Viking Holdings gained more than 5 per cent. Banking stocks were higher, with JPMorgan Chase up 1.2 per cent and Goldman Sachs rising 2.2 per cent.

Gold prices initially rose after the postponement of U.S. strikes but later declined. Spot gold fell 2 per cent to USD 4,318 per ounce, while silver prices dropped over 3 per cent to USD 67.

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