US-Iran war: Gift Nifty breaks 800 points amid steep fall in US stocks. What to expect on Wednesday?

The GIFT Nifty was trading around 807 points lower, or 3% lower, late on Tuesday, indicating a weak start for Indian equities on Wednesday when markets reopened after the Holi holiday. Domestic markets remained closed on Tuesday, leaving investors to digest fresh geopolitical developments and comments from US President Donald Trump that the conflict with Iran could last up to four weeks.

They had already come under heavy pressure when Indian equities last traded on Monday. The BSE Sensex tumbled over 2,700 points in early trade and ended 1.29% lower at 80,238, down 1,048 points. Nifty closed near 24,850 after a volatile session. Due to risk aversion, the investor’s assets are about Rs. 6.6 lakh crore has decreased.

Weakness in GIFT Nifty tracks soft session on Wall Street. US stocks opened lower on Monday as conflict in the Middle East widened and oil prices rose. The Dow Jones Industrial Average fell 0.7% to 48,661.35 in early trade, while the S&P 500 fell 0.5% to 6,845.44 and the Nasdaq fell 0.4% to 22,575.52.

The Israeli military said it had launched new broad strikes on Tehran, while Gulf monarchies hinted at possible retaliation and tankers were attacked near Oman.

High crude prices are a major concern for India, which is heavily dependent on oil imports. Analysts say a sustained hike could fuel inflation, put pressure on the rupee and complicate interest rate projections.

Siddharth Khemka, head of research at Motilal Oswal Financial Services, said Monday’s sell-off reflected a clear risk-off move. Markets reacted to US and Israeli attacks on Iran and regional retaliation by shifting to safer assets, he noted.

Also Read: After Brutal Monday Crash, Trump Says Iran War Could Last Four Weeks How will the stock market react on Wednesday?

Vinod Nair, head of research at Geojit Investments, said rising crude prices and a weaker rupee signaled concern over potential supply disruptions. He warned that higher oil prices could push up inflation, affect government finances and strain margins for sectors dependent on energy and chemicals. He added that the India VIX has moved higher, indicating increased uncertainty, while selling by foreign institutional investors has intensified.

From a technical point of view, the market remains under pressure but appears oversold.

Benchmark indices are trading below key short-term and medium-term averages, with the intraday chart showing a weak formation, said Shrikant Chauhan, head of equity research at Kotak Securities. However, he said a technical bounce cannot be ruled out given the extent of recent losses.

Analysts see 24,750 on Nifty and 80,000 on Sensex as key support levels. As long as these levels hold, a pullback towards 25,000-25,075 on Nifty is possible. However, a decisive break below 24,750 could open the door to 24,650-24,500.

Gaurav Udani, founder of ThinkRedBlue Securities, sees immediate resistance near 25,100 and support in the 24,550–24,600 band. He warned that a sustained breach of support could extend losses, while reasserting resistance is necessary for short-term stabilization. Given the geopolitical uncertainty, he advised traders to avoid aggressive leveraged positions.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)