Nifty Signals Potential Gap-Down Opening as US-Iran Tensions Escalate, Impacting Oil and Precious Metal Prices; 8 Stocks to Watch

Stock Market Volatility Hits Indian Markets Amid US-Iran Tensions

The Indian stock market witnessed a highly volatile week (April 6–10, 2026), but ended with strong gains, marking its best weekly performance in over 5 years. The Nifty 50 index surged from 22,713 to 24,050, recording a weekly gain of 1,337 points or close to 6%. The BSE Sensex shot up from 73,319 to 77,550, logging a weekly gain of 4,231 points or around 5.75%. Likewise, the Bank Nifty index went up from 51,548 to 55,912, clocking a weekly gain of 4,364 or around 8.50%.

The positive momentum was primarily driven by improving global sentiment amid hopes of further easing in Middle East tensions ahead of scheduled negotiations between the US and Iran. This led to cooling crude oil prices and supported risk appetite for emerging markets like India. Additionally, sustained buying interest from domestic institutional investors and selective short covering aided the upmove. Optimism around the ongoing earnings season, along with stability in the rupee and bond yields, further contributed to the constructive undertone, though intermittent volatility persisted amid a consolidation bias.

However, the Gift Nifty index is down by over 300 points during the early morning trading on Monday, signaling a big gap-down opening on Dalal Street. Experts attribute this weak opening to the escalation of the US-Iran war following the failure of ceasefire negotiations in Islamabad over the weekend. Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, expects the Indian stock market to begin the week on a weak note, with Gift Nifty indicating a gap-down opening near the 23,700 zone.

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The failure of US–Iran negotiations has heightened concerns of a prolonged conflict, further intensified by reports of a US naval blockade on Iranian ports. This development has triggered a clear risk-off sentiment across global markets. Asian markets are trading lower, with South Korea's Kospi down over 1% and Japan's Nikkei slipping more than 0.5%, reflecting investor anxiety around rising crude oil prices and their broader macroeconomic impact.

The US President Donald Trump said the US would block the Strait of Hormuz, a move that would likely exacerbate global oil and fuel shortages. Crude oil prices jumped on Monday after the US-Iran peace talks failed to reach a deal over the weekend, and the US moved to blockade the Strait of Hormuz, escalating a global energy crisis. Global benchmark Brent crude oil price surged 8.36% to $103.16 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 8.22% to $104.57 per barrel.

Ajit Mishra, SVP — Research at Religare Broking, believes traders should maintain a positive yet cautious stance until the Nifty decisively holds above the key level of 23,500. They should focus on stock-specific opportunities, particularly in rate-sensitive and cyclical sectors, while closely monitoring earnings, crude, and global developments for further cues. Vatsal Bhuva, Technical Analyst at LKP Securities, said a strong bullish candlestick on the weekly chart of Bank Nifty reflects improving sentiment, while on the daily chart, the index is hovering around its 200 SMA, indicating a recovery phase rather than a confirmed breakout.

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

Market experts — Sumeet Bagadia of Choice Broking, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, and Shiju Koothupalakkal, Senior Manager — Technical Research at Prabhudas Lilladher, recommended these eight buy-or-sell stocks for intraday trading: Titan, Honasa Consumer, PNB, HDFC Life, Kotak Mahindra Bank, Paytm, GE Vernova T&D India, and Banco Products India.