Stock market: Gift Nifty falls 555 points amid Iran war; key levels to watch today
Disruptions to trade flows through the Strait of Hormuz, caused by increased security risks and insurance restrictions, have resulted in a sharp rise in crude oil prices, exacerbating inflation and supply concerns, said Ponmudi R, CEO of Enrich Money.
- Mar 4, 2026,
- Updated Mar 4, 2026 8:04 AM IST
After a trading holiday on Tuesday for Holi 2026, Indian equity benchmark indices are likely to extend losses on Wednesday, as escalating geopolitical tensions in West Asia and between the US, Israel and Iran continue to weigh on global sentiment
Nifty futures on the NSE International Exchange traded 555 points, or 2.22%, lower at 24,437.5, signalling a negative start for the equity market on March 4.
Disruptions to trade flows through the Strait of Hormuz, caused by increased security risks and insurance restrictions, have resulted in a sharp rise in crude oil prices, exacerbating inflation and supply concerns, said Ponmudi R, CEO of Enrich Money.
Ponmudi said elevated energy prices pose a dual risk to India, one of the world's largest oil importers: they widen the current account deficit while also increasing imported inflation pressures. “The macro sensitivity to crude remains high, particularly at a time when external balances are closely watched,” he said.
Asian equities tumbled on Wednesday. South Korea’s Kospi crashed 6.17%, while Hong Kong’s Hang Seng Index declined 1.53%. Japan’s Nikkei 225 plunged 3.40% to 54,367.72.
Overnight, Wall Street closed lower. The Dow Jones Industrial Average declined 0.83% to end at 48,501.27. The S&P 500 slumped 0.94% to 6,816.63. The Nasdaq Composite plunged 1.02% to 22,516.69.
The 50-pack index is expected to open down nearly 2%, possibly in the 24,400-24,500 range, on weak global cues and aggressive FII short positioning in index futures, said Hariprasad K, a SEBI-registered research analyst and founder of Livelong Wealth.
“Derivative data indicates a sustained downside bias, suggesting the current setup favors a medium-term corrective phase under prevailing positioning,” Hariprasad added.
Hariprasad said that if global sell-offs in the US and Europe continue, along with commodity price spikes and continued FII selling, the index may test the critical 24,000 support zone, where significant open interest is concentrated.
Ponmudi said the Nifty 50 slipping below the key 25,000 mark signals continued near-term pressure on the market. He noted that the 24,900–25,000 zone has now turned into a strong resistance, and the index must reclaim this band on a closing basis for any meaningful relief rally. “Nifty 50 has decisively slipped below the key 25,000 psychological mark, indicating sustained near-term pressure,” he said.
According to Ponmudi, immediate support for the index is seen around 24,600, while a sharper selloff could drag it toward the 24,200–24,000 zone if panic selling intensifies.
“A sell-on-rise strategy is favored, while only a sustained move above 25,300 would signal a potential stabilization,” Ponmudi said.
Previous session
In the previous session on Monday, the Sensex slumped 1,048.34 points, or 1.29%, to settle at 80,238.85, while the Nifty declined 312.95 points, or 1.24%, to close at 24,865.70.
After a trading holiday on Tuesday for Holi 2026, Indian equity benchmark indices are likely to extend losses on Wednesday, as escalating geopolitical tensions in West Asia and between the US, Israel and Iran continue to weigh on global sentiment
Nifty futures on the NSE International Exchange traded 555 points, or 2.22%, lower at 24,437.5, signalling a negative start for the equity market on March 4.
Disruptions to trade flows through the Strait of Hormuz, caused by increased security risks and insurance restrictions, have resulted in a sharp rise in crude oil prices, exacerbating inflation and supply concerns, said Ponmudi R, CEO of Enrich Money.
Ponmudi said elevated energy prices pose a dual risk to India, one of the world's largest oil importers: they widen the current account deficit while also increasing imported inflation pressures. “The macro sensitivity to crude remains high, particularly at a time when external balances are closely watched,” he said.
Asian equities tumbled on Wednesday. South Korea’s Kospi crashed 6.17%, while Hong Kong’s Hang Seng Index declined 1.53%. Japan’s Nikkei 225 plunged 3.40% to 54,367.72.
Overnight, Wall Street closed lower. The Dow Jones Industrial Average declined 0.83% to end at 48,501.27. The S&P 500 slumped 0.94% to 6,816.63. The Nasdaq Composite plunged 1.02% to 22,516.69.
The 50-pack index is expected to open down nearly 2%, possibly in the 24,400-24,500 range, on weak global cues and aggressive FII short positioning in index futures, said Hariprasad K, a SEBI-registered research analyst and founder of Livelong Wealth.
“Derivative data indicates a sustained downside bias, suggesting the current setup favors a medium-term corrective phase under prevailing positioning,” Hariprasad added.
Hariprasad said that if global sell-offs in the US and Europe continue, along with commodity price spikes and continued FII selling, the index may test the critical 24,000 support zone, where significant open interest is concentrated.
Ponmudi said the Nifty 50 slipping below the key 25,000 mark signals continued near-term pressure on the market. He noted that the 24,900–25,000 zone has now turned into a strong resistance, and the index must reclaim this band on a closing basis for any meaningful relief rally. “Nifty 50 has decisively slipped below the key 25,000 psychological mark, indicating sustained near-term pressure,” he said.
According to Ponmudi, immediate support for the index is seen around 24,600, while a sharper selloff could drag it toward the 24,200–24,000 zone if panic selling intensifies.
“A sell-on-rise strategy is favored, while only a sustained move above 25,300 would signal a potential stabilization,” Ponmudi said.
Previous session
In the previous session on Monday, the Sensex slumped 1,048.34 points, or 1.29%, to settle at 80,238.85, while the Nifty declined 312.95 points, or 1.24%, to close at 24,865.70.