Nifty Falls Amid Global Tensions and Economic Concerns; Eight Stocks to Watch

Indian Stock Market Closes in the Green After Volatile Trading Session

On Monday, 7 April 2026, the Indian stock market finally closed in the green, ending a highly volatile trading session. The Nifty 50 index gained 255 points and closed at 22,968, while the BSE Sensex shot up 787 points and closed at 74,106. The Bank Nifty index ended 1,060 points northward at 52,609.

Sectorally, most sectors participated in the recovery, with realty, financials, and banking emerging as the top gainers. Broader markets also joined the rebound, with midcap and smallcap indices advancing nearly 1.5% each, supported by improved market breadth and selective risk appetite.

Global Markets Show Signs of Optimism

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The Gift Nifty is under pressure today, down around 100 points in the early morning session. However, Asian markets are signalling optimism, with Japan's Nikkei and South Korea's Kospi trading higher in the early morning session. The Dow Jones Industrial Average extended its gains in the US stock market, supported by a slight cooling in oil prices and optimism over a potential resolution to the US-Iran war.

US-Iran War Tensions Remain Elevated

US President Donald Trump's ultimatum to Iran to open the Strait of Hormuz ends today. Trump intensified his threats to Iran, declaring that the country could be "taken out in one night" during a White House press conference. The deadline to reopen the Strait of Hormuz fast approaches, with Trump setting a precise deadline of Tuesday, 8:00 P.M. Eastern Time.

Market Outlook and Recommendations

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Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, expects a sideways opening for the Indian stock market today, with the Gift Nifty indicating a muted start ahead of the weekly expiry. However, global cues offer some support, with the overall sentiment remaining cautious.

Market experts have recommended several stocks for intraday trading, including:

Crude Oil and Gold Prices

Amid high tension in the US-Iran war, the WTI crude oil price witnessed sharp buying in the early morning deals in the Asian market today, trading close to its record high of $115/bbl. The COMEX gold rate opened flat and touched an intraday high of $4,694.90 per troy ounce, but failed to sustain at higher levels and retraced after the profit-booking trigger.

USD/INR Exchange Rate

The Indian rupee gained 28 paise to close at 92.90 against the US dollar on Monday, following the Reserve Bank's measures to curb speculative fervour and dampen volatility in the Indian currency. Forex traders said that though the RBI measures are rupee-positive, unabated withdrawal of foreign capital, a firm dollar, and higher crude oil prices amid a volatile geopolitical situation continue to put pressure on the rupee.

India VIX Remains Elevated

India VIX remains elevated above 25, indicating sustained volatility in the system. At such levels, option premiums remain expensive, and the expected pace of theta decay is significantly slower. This alters the typical expiry dynamics, where time decay usually plays a larger role, and instead shifts the focus towards directional volatility.

Bank Nifty and Nifty 520 Outlook

Ajit Mishra, SVP — Research at Religare Broking, expects a break above the 23,000 mark to further extend the up move towards the 23,400–23,500 zone, where the hurdle of the short-term moving average (20 DEMA) is placed. On the downside, support is seen in the 22,500–22,000 range.

Vatsal Bhuva, Technical Analyst at LKP Securities, expects the Bank Nifty to drift towards its 20-day average, which is in the 54,000–54,200 zone. On the downside, support is seen at 51,800, while the 53,500 level may act as an immediate hurdle.