US-Iran Tensions Keep Markets on Edge Ahead of April 10 Open

Markets Continue to Consolidate Amid US-Iran Tensions

The Nifty 50 index declined by nearly 1 percent on April 9, marking the first drop in six sessions. This decline was largely attributed to profit booking, as investors remain cautious due to the fragile two-week ceasefire between the United States and Iran.

Despite the short-term decline, the technical setup of the Nifty 50 has improved, with the index sustaining above short-term moving averages. However, experts predict that the market will remain in a consolidative, range-bound phase until the US, Iran, and Israel fully comply with a formal agreement.

Immediate Levels to Watch

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The immediate hurdle for the Nifty 50 is seen at 24,000, with a convincing move above this level potentially opening the door to 24,200-24,300. On the downside, the 23,500-23,450 zone can act as immediate support.

Key Levels for Nifty 50 and Bank Nifty

The Nifty 50 formed a bearish candle alongside the previous day's green candle, indicating consolidation after a recent sharp rally. The index continues to sustain above the 10- and 20-day EMAs, both of which are trending upward. The RSI has tilted down to 51.3 but remains well above the signal line, while the MACD maintains a bullish crossover with rising green bars in the histogram.

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Similarly, the Bank Nifty also formed a bearish candle alongside Wednesday's green candle, signaling profit booking and consolidation after a stellar rally in the recent past. The banking index fell 1.58 percent but continues to sustain well above short-term moving averages.

Options Data

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 0.97 on April 9, compared to a 1.13 in the previous session. The increasing PCR indicates a firming up of bullish sentiment in the market.

India VIX and Market Sentiment

India VIX rose 3.71 percent to move back above the 20 mark at 20.43, signaling some discomfort for bulls. The index needs to cool down and sustain below the 15 zone to bring stability to the bulls' camp.

F&O Segment

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