GIFT Nifty soars 300 points, indicates gap-up start for Indian equities; check key levels here

All Magnificent Seven stocks rose on optimism over easing tariff tensions.

After taking a pause in the previous session, Dalal Street bulls might have a roaring return to the benchmark indices Nifty 50 and Sensex on April 25, amid easing tariff woes.

At 7.20 am, the GIFT Nifty index was quoting 24,529, indicating nearly a 300 point premium to the previous session's close. This implies a gap-up start for the bourses.

Treasury Secretary Scott Bessent said the U.S. may reach an “agreement of understanding” on trade as soon as next week. As a result, Wall Street rallied sharply on Thursday, with technology stocks leading the pack, amid hopes of optimism on the tariffs front.

The Dow Jones Industrial Average jumped 1.3 percent, S&P 500 gained 2.1 percent, while the tech-heavy Nasdaq Composite soared around 2.7 percent, as all the "Magnificent Seven" megacap stocks all gained.

Asian shares rose at the open Friday after optimism about the Federal Reserve cutting rates sooner than anticipated powered a rally in US stocks and Alphabet Inc. reported solid earnings. Shares in South Korea rose, with the Kospi index up 1.1 percent, while the Nikkei 225 soared 1.4 percent. The Taiwan benchmark surged 2.6 percent, early Friday morning.

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In the previous session,  Indian equities took a breather after a 7-day rally as investor sentiments turned cautious amid mixed global cues. Profit booking was seen in some of the index heavyweights, which contributed to the decline in the benchmark indices. Both Nifty Midcap 100 and Nifty Smallcap 100 managed to end on a flat note.

The Nifty 50 index ended the rollercoaster April series with a strong 655-point gain, rising 2,500 points from the lows. April-May rollovers were in line with the average, while FII long exposure stood at 41 percent, with net contracts at their lowest since October 2024.

"With a sharp rally already behind it, the index now appears to be entering a time-wise corrective phase. Broadly, the Nifty has carved out a defined range between 24,500 and 24,000, which could serve as a critical decision zone in the coming sessions," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

He added that a strong close above 24,400 would indicate a likely continuation of the rally, unlocking potential up to 24,500. However, holding the 23,900–24,000 support zone is essential to maintain the bullish bias.

Going ahead, some key triggers for May include Q4 results, the FOMC meeting, and global developments.

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