Indian equity markets are expected to open cautiously on Tuesday following the renewed escalation of the Iran-US conflict. The Nifty Futures, also known as Gift Nifty, indicates a gap-down opening of over 150 points, currently set at 24,035.
Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, noted that global cues remain unstable. He explained, “The US markets experienced pronounced selling pressure, with the Dow facing a significant drop as crude oil prices surged due to renewed geopolitical tensions in the Strait of Hormuz. The sustained strength in crude oil, remaining above the $100 mark, poses a macroeconomic risk for India, given its heavy reliance on imports. Elevated oil prices could negatively impact inflation expectations and corporate margins, thus constraining risk appetite.”
Ponmudi R, CEO of Enrich Money, added that while the results of recent state assembly elections and new data showing foreign portfolio investors have turned net buyers of Indian equities provide some support, the prevailing mood remains cautious. He remarked, “Geopolitical uncertainty and ongoing global risk aversion dominate market sentiment, limiting potential for a sustained upside in the near term.”
From a derivatives perspective, indications also point to caution. Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, highlighted that the put-call ratio (PCR) near 0.61 suggests a cautious-to-bearish sentiment. He noted, “Aggressive call writing between 24,200 and 24,300 caps potential upside, while the put base at 24,000 to 23,800 reinforces support.” Additionally, the India VIX, maintaining near 18, indicates a period of controlled volatility, promoting range-bound trading rather than significant price movements.
“Structurally, unless the index decisively surpasses the 24,300 resistance level, rallies are likely to encounter selling pressure, making a sell-on-rise strategy more advantageous. A breakout on either side of this range will be key to determining the next directional trend,” he added.
While major markets in the Asia-Pacific region are closed today, those that have opened, including Taiwan, Vietnam, and Australia, have reported declines in early trading on Tuesday.
This overview was published on May 5, 2026.
