Nifty, Sensex may see gap-up open as global sentiment improves; check key levels

Investors will closely watch domestic cues such as inflation figures and Q4 earnings, along with global developments going ahead.

Domestic indices Nifty 50 and Sensex are likely to see a positive start on the bourses for the April 15 session, tracking positive global cues, amid a holiday-shortened week.

At 7.30 am, the GIFT Nifty index was trading 375 points higher at 23,292, which indicates a gap-up start for Indian equities, continuing their gaining streak.

Overnight, Wall Street settled higher, with iPhone maker Apple giving the S&P 500 its biggest boost as the White House exempted smartphones and computers from new tariffs. The Dow Jones Industrial Average rose 0.78 percent, the S&P 500 gained 0.79 percent and the Nasdaq Composite rose 0.64 percent in trade.

Uncertainty over future tariffs kept a lid on optimism, with the main indices finishing off their highs of the day. Investors remain worried about how companies will manage supply chains as more changes are expected on the tariff front.

Tracking Wall Street's cues, Asian markets also gained in early trade on Tuesday. Asian bourses traded in a sea of green, with Japan's Nikkei 225 jumping over one percent, while South Korea's Kospi and Kosdaq indices reported strong gains. Hong Kong's Hang Seng index also ticked up 0.4 percent.

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In the previous session, the Nifty 50 and Sensex outperformed, jumping almost two percent respectively, after a 90-day pause on U.S. tariffs was announced, from all countries, excluding China.

The day saw widespread buying across sectors, with metal and pharma stocks leading the gains. Meanwhile, the market's fear barometer, India VIX, declined sharply by 6.21 percent, indicating easing investor anxiety.

However, going ahead, analysts suggest volatility will likely continue. "We believe that the current market texture is extremely volatile and uncertain; therefore, level-based trading would be the ideal strategy for positional traders. In the near future, the 50-day and 20-day SMA or 23,000 would act as crucial resistance zones," said Amol Athawale, VP-Technical Research, Kotak Securities.

"Technical setup indicates that as long as the market is trading above 22,500, the pullback formation is likely to continue. Conversely, if it falls below 22,500, market sentiment could shift negatively, and traders may prefer to exit their long positions," he added.

Going ahead, Indian markets are likely to remain volatile, amid global uncertainties and volatility. Further developments on the U.S. tariff front are likely to guide investors, who will also be closely tracking India's headline inflation figures, due later today, and the corporate earnings season for the quarter ended March.

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