Global Markets Ahead of April 6 Opening: Key Trends and Geopolitical Influences to Watch

Nifty 50 Takes a U-Turn After Sharp Gap-Down Opening

The Nifty 50 took a 'U' turn after a sharp gap-down opening and closed moderately higher on April 2, supported by value buying, a strengthening rupee, and a rally in technology stocks. However, geopolitical tensions and elevated oil prices remain in focus and are likely to cap the upside until there is a ceasefire and the reopening of the Strait of Hormuz. Technical indicators are largely in favour of bears despite Thursday's recovery.

Key Levels for the Nifty 50

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The Nifty 50 formed a long bullish candle on the daily charts following a sharp recovery from the day's low. However, the lower high–lower low formation remains intact, with all key moving averages sloping downward and the 100-day EMA sustaining below the 200-day EMA. The index could not close above the 78.6 percent Fibonacci retracement (of the rally from the April 2025 low to the January 2026 high). The RSI remains below 40, though above the signal line, while the MACD sustains below the reference and zero lines, although the histogram weakness has faded further.

Key Levels for the Bank Nifty

The Bank Nifty closed 0.2 percent higher and also formed a long green candle with a lower shadow on the daily charts after a gap-down opening, indicating a positive mood with buying interest at lower levels. However, the lower top–lower bottom formation remains intact, with all moving averages trending downward and the 50-day EMA sustaining below the 100-day and 200-day EMAs. The RSI remains below the 40 level at 35.13, while the MACD stays below both the signal and zero lines, with weakness in the histogram continuing to fade.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Nifty Call Options Data

Nifty Put Options Data

Bank Nifty Call Options Data

Bank Nifty Put Options Data

Funds Flow

Put-Call Ratio

The Nifty Put-Call ratio (PCR) climbed to 1.09 on April 2, compared to a 0.93 in the previous session. This indicates that traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.

India VIX

India VIX rebounded 2.04 percent to 25.52 on Thursday after falling 10.32 percent in the previous session, signalling elevated concerns for bulls. Bulls may remain uncomfortable as long as it hovers around the 25 level; it needs to fall decisively below the 20 level for bulls to enter a comfort zone.

Long Build-up and Unwinding

A long build-up was seen in 53 stocks, indicating an increase in open interest (OI) and price, while 44 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

Short Build-up and Covering

88 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions, while 33 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

High Delivery Trades

Here are the stocks that saw a high share of delivery trades, reflecting investing (as opposed to trading) interest in a stock.

Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.