Sensex, Nifty opening: Will stock market continue its rally today?
Markets are set for a cautious Tuesday open as investors assess fresh US strikes in southern Iran after Monday's sharp rally. Renewed tension has pushed Brent crude to $98 again, keeping inflation, the rupee and expiry-day volatility in focus.
Stock markets are likely to open on a cautious note on Tuesday after Monday’s sharp rally, as investors assess fresh US military strikes in southern Iran and their possible impact on global oil prices and inflation.
GIFT Nifty futures were trading at 24,050.50 around 8:40 am, indicating that the benchmark Nifty50 could open near Monday’s closing level of 24,031.70.
Hitesh Tailor, Research Analyst at Choice Equity Broking, said Indian markets may open slightly lower despite broadly positive global sentiment.
“Indian equity markets are expected to open on a mildly negative note, with Gift Nifty trading around 24,030, down by 95 points, indicating subdued opening cues for domestic indices,” he said.
The market mood remains mixed after the US carried out fresh strikes in southern Iran targeting boats allegedly attempting to lay mines and missile launch sites. The US described the action as defensive even as talks between Washington and Tehran continue to end the three-month-old conflict.
MARKETS MAY TURN VOLATILE AGAIN
The latest strikes have once again raised concerns around the Iran conflict just when markets had started pricing in hopes of a possible peace deal.
Brent crude futures climbed back above $98 per barrel after the fresh escalation, tempering some of the optimism seen on Monday when crude oil prices had fallen below $100.
Global markets traded mixed as investors balanced hopes of easing geopolitical tensions against the risk of renewed escalation in West Asia.
The Iran war has remained a major trigger for global equity, currency and commodity markets over the past few months.
For India, the situation is especially important because the country imports nearly 90% of its crude oil requirements. Higher oil prices increase concerns around inflation, fuel costs, imported inflation and pressure on the rupee.
SENSEX, NIFTY HAD RALLIED SHARPLY ON MONDAY
Benchmark indices had surged to a two-week high on Monday after hopes emerged that the US and Iran were moving closer to a possible agreement.
The Nifty50 closed at 24,031.70, gaining 312.40 points or 1.32%, while Bank Nifty rallied 2.29% to close at 55,293.65.
The rally was supported by falling crude oil prices, a recovery in the rupee, strong buying in banking stocks, and improving foreign investor sentiment.
Foreign institutional investors (FIIs) also turned net buyers after four consecutive sessions of selling.
According to provisional exchange data, FIIs purchased equities worth Rs 821.75 crore on Monday.
Domestic institutional investors (DIIs) continued their buying support and purchased shares worth Rs 3,856.90 crore.
EXPERTS EXPECT RANGE-BOUND TRADE
According to Tailor, global sentiment remains stable due to easing geopolitical concerns, but some profit booking at higher levels may keep markets range-bound in early trade.
He said Monday’s strong rally has improved the short-term technical setup for markets.
“Nifty ended on a strong positive note on 25th May 2026, closing near the day’s high at 24,031.70, up 312.40 points or 1.32%, supported by strong buying momentum across sectors,” he said.
The Nifty opened with a strong gap-up and crossed the important 24,000 level during Monday’s session.
According to Tailor, the formation of a strong bullish candlestick pattern indicates improving sentiment and sustained buying interest.
Immediate support for Nifty is placed around the 23,750-23,800 zone, while resistance is seen near the 24,100-24,200 range.
BANK NIFTY CONTINUES TO SHOW STRENGTH
Banking stocks are expected to remain in focus after Bank Nifty posted a strong rally in the previous session.
Bank Nifty climbed 1,238.30 points or 2.29% on Monday and closed near the day’s high at 55,293.65.
The index had crossed the important 55,000 mark during the session, supported by strong buying in heavyweight banking stocks.
“Technically, the formation of a strong bullish candlestick pattern reflects strengthening momentum and improving sentiment in the banking space,” Tailor said.
He added that immediate support for Bank Nifty is placed around the 54,500-54,700 zone, while resistance is seen near the 55,500-55,800 range.
DERIVATIVES EXPIRY MAY ADD VOLATILITY
Analysts also expect elevated volatility in Tuesday’s session because of the expiry of Nifty50’s May derivatives contracts.
Derivative expiry sessions usually witness sharp intraday swings, heavy trading volumes, and sudden profit booking.
This could keep markets volatile despite the broader positive trend.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)