Nifty and Sensex Surge in Opening Day Rally With Strong Gains in Defence and PSU Bank Stocks

Mumbai, April 01, 2026: Indian equity indices started the month of April on a strong note with Nifty ending above 22,650, supported by optimism around a potential de-escalation in US–Iran tensions. At close, Sensex gained 1,186.77 points (1.65%) to settle at 73,134.32, while Nifty advanced 348 points (1.56%) to 22,679.40. Broader markets outperformed, with the Nifty Midcap index rising 2.2% and the Small cap index climbing 3.4%.

Sectorally, the rally was broad-based with all indices ending in the green except pharma, which declined 1%. Defence led the gains with a surge of over 5%, followed by capital goods, media and PSU banks, each up around 3%. Auto, consumer durables, IT, metals, realty, FMCG, telecom and private banks posted gains in the range of 1–2%.

Nifty Outlook                            

The index formed a bearish candle with a higher high and a higher low highlighting pullback from oversold territory. The index however failed to sustain at higher levels and gave up some of its opening gains to close the session around 22,700 levels. Volatility is likely to remain elevated in the near term, amid rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment.

Nifty after recent sharp decline has approached extreme oversold territory in the short-term chart so pullback cannot be ruled out. A move above Wednesday high (22941) will open further upside towards 23,200 levels. However, for any meaningful pause in the current downtrend, the index needs to start forming higher highs and higher lows on the daily chart on a sustained basis along with a close above the previous week’s high of 23,465. Key support is placed in the 22,100–21,800 zone being the trendline support joining last 2-year lows and the 200 weeks EMA.

Bank Nifty Outlook

Bank Nifty formed a high wave candle with a higher high and a higher low highlighting pullback from oversold territory. The index however failed to sustain at higher levels and gave up some of its opening gains to close the session around 51,500 levels. Volatility is likely to remain elevated in the near term, amid rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment.

Bank Nifty after recent sharp decline has approached extreme oversold territory in the short-term chart so pullback cannot be ruled out. A move above Wednesday high (52025) will open further upside towards 53,500 levels. However, for any meaningful pause in the ongoing downtrend, the index needs to establish a sustained pattern of higher highs and higher lows in the daily chart, along with a close above last week high of 54,150. On the downside weakness below the psychological 50,000 levels will signal extension of the decline towards 49,200-49,000 levels in the coming sessions.

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