Mumbai: Indian equity benchmarks are set for a strong opening on Tuesday, with the Nifty likely to trade above the key 23,000 level, after US President Donald Trump announced a five-day pause on military strikes against Iranian power plants and energy infrastructure.
Markets are preparing for back-to-back derivatives expiry sessions, as the Sensex weekly expiry has been shifted to Wednesday owing to a public holiday on Thursday. This comes after the Nifty suffered a sharp 600-point decline on Monday, contributing to a massive erosion of over ₹15 lakh crore in investor wealth amid heightened geopolitical tensions.
Trump’s decision to defer action on Iran, citing productive conversations between the two sides, triggered a relief rally in risk assets overnight. The Dow Jones Industrial Average surged more than 600 points, while international oil prices tumbled as much as 14 per cent at one stage. However, US indices pared some of their early gains by the close, and oil prices also recovered partially from the day’s lows.
Even after the sharp drop, crude oil remains at elevated levels, well below the psychological $100 mark but still high enough to keep inflationary pressures in focus. Analysts will also be closely watching any potential reversal in the US dollar’s movement.
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On the technical front, the immediate resistance zone for the Nifty lies at 23,000, followed by the tougher 23,300–23,400 band, which has acted as a strong barrier in recent sessions. A decisive move above these levels could signal further upside in the short term.
Global cues turned supportive after Trump’s announcement eased immediate fears of escalation in the Middle East conflict. The development has improved sentiment across Asian markets ahead of Tuesday’s trading, though caution remains as the five-day window for talks unfolds.
Investors will now monitor whether the pause leads to any meaningful de-escalation or if fresh volatility returns once the period ends. With the Nifty weekly expiry in progress and the Sensex expiry following a day later, traders are expected to remain active, balancing relief from the Iran news against lingering concerns over oil prices and broader macroeconomic factors.
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