Nifty Sees Potential for Rebound to 24,000 by Wednesday Amid Optimism over US-Iran Peace Negotiations

Indian Markets Eye Rebound as Global Sentiment Improves

The Indian stock market, represented by the Nifty, is poised to regain the 24,000 mark when trading resumes on Wednesday, driven by a positive shift in global sentiment and renewed hopes of continued negotiations between the US and Iran.

The domestic market remained closed on Tuesday, a public holiday in India, to observe Baba Saheb Ambedkar Jayanti. Trading across equity and derivatives segments was suspended, giving investors a brief respite before the market reopens.

In a sign of a potential rebound, the GIFT Nifty rose by up to 1 percent on Tuesday afternoon. At 11:30 am, the GIFT Nifty was trading at 24,093.5, higher by 216 points or 0.9 percent. This suggests that the Nifty could open on a strong note and may reclaim the 24,000 level after Monday's decline.

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Analysts are optimistic about the market's prospects, with the 23,950–23,980 zone expected to act as a key resistance. A sustained move above 23,980 could extend the pullback rally towards 24,100, followed by 24,230 in the short term. Conversely, the 23,700–23,650 zone will serve as an immediate support zone for the index.

The Sensex and the Nifty had experienced a decline on Monday, with the Sensex falling 702.68 points or 0.91 percent to settle at 76,847.57, and the Nifty falling 207.95 points or 0.86 percent to close at 23,842.65. The decline was attributed to concerns over rising crude oil prices following the lack of progress in US-Iran negotiations.

However, global cues have since turned supportive, with Brent crude prices easing below the USD 100 per barrel mark, falling about 2.7 percent to around USD 96.66 a barrel. This easing of prices has provided relief on inflation and input cost concerns.

Asian markets have advanced, with Japan's Nikkei and South Korea's Kospi rising over 2 percent and 3.05 percent, respectively. US markets also ended higher overnight, with the S&P 500 and Nasdaq gaining more than 1 percent each.

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The improved investor sentiment is attributed to indications that the US and Iran may continue negotiations. Reports suggesting both sides remain open to dialogue, along with comments from US President Donald Trump on a possible deal, have helped ease concerns over a prolonged conflict.

Market Comparison

Note: The market comparison table shows the closing values for Monday and the opening values for Tuesday.