The Nifty staged a significant relief rally on Wednesday, April 1, 2026, rising 348 points to close at 22,679.40 after Monday's brutal sell-off. According to reports from CNBC TV18, the index opened with a sharp 568-point gap-up at 22,899 amid optimism that the ongoing war may be nearing resolution. However, the index touched an intraday high of 22,941 before giving up over 300 points from the peak, ending well off the day's highs. The session reflected an effort to build a short-term base, though upside remained capped near previous resistance levels. The recovery gained momentum after U.S. President Donald Trump indicated that the U.S. could exit Iran within two to three weeks, citing no compelling reason to continue the conflict. This development boosted global risk appetite significantly, with the Nifty 50 opening over 500 points higher and maintaining strong gains throughout the session.
Among gainers, Reliance Industries (+37.38 points), HDFC Bank (+35.83 points), and State Bank of India (+34.83 points) were the top positive drivers for the Nifty 50, while Dr. Reddy's Laboratories (-6.03 points), Sun Pharmaceutical Industries (-6.78 points), and NTPC (-6.23 points) weighed on the index. Sectorally, all indices ended higher except pharma and healthcare, with PSU banks, media, and metals leading the gains. The Nifty PSU Bank index led the rally with a 4% rise, while the Nifty Metal and Nifty Media indices posted robust gains of over 3-4% each. However, the Nifty Pharma index lagged, emerging as the only notable underperformer, down 0.99% due to pricing concerns in the GLP-1 segment. Broader markets outperformed significantly, with the Nifty Midcap 100 and Smallcap 100 rising 2.22% and 2.95% respectively. Market breadth remained strong with 2,936 stocks advancing and only 283 declining out of 3,322 stocks traded on the NSE.
According to Sudeep Shah of SBI Securities, the Nifty 50 needs to reclaim and sustain above 23,000 for a further upmove, with the immediate hurdle placed at 22,800. The 23,500 level, which coincides with the 20-day EMA, is expected to be a crucial hurdle, with sustaining above this level potentially triggering a new leg of rally. SBI Securities sees immediate support in the 22,550–22,500 zone, with any sustained move below this zone potentially resulting in the Nifty extending weakness towards 22,300, followed by 22,100 in the short term. Weekly options data suggests the Nifty 50 may trade within a range of 22,500–23,000 in the short term, with the maximum Call open interest at the 23,500 strike, followed by 23,000 and 23,200 strikes, while the 22,500 strike holds the maximum Put open interest. The India VIX plunged over 10% to near the 25 mark, indicating easing market fear after a sharp correction in March where both the Nifty 50 and Sensex had fallen more than 11% each. A decisive bullish candle, supported by strong follow-through and a break above the prior swing high, would be essential to revive buying interest.
Going ahead, the sustainability of this recovery will depend on continued progress in de-escalation of the West Asia conflict, as reported by CNBC TV18. Rupak De of LKP Securities noted that while the broader trend remains weak, the index's proximity to key support and signs of RSI divergence indicate early recovery signals. Immediate resistance is seen at 22,800–22,850, with a move above this potentially pushing the index toward 23,000 and higher, while a break below 22,500 may revive bearish momentum. However, the rebound appears corrective within a broader weak structure, and unless Nifty reclaims 23,000–23,200, rallies are likely to face resistance, keeping a sell-on-rise bias intact amid elevated volatility. The India VIX, the fear gauge, fell 15.2% to 23.65, signaling some comfort for bulls, though it needs to fall sharply below the 22 level to provide further support to bullish sentiment. The easing geopolitical tensions are seen as positive for India, given its heavy dependence on energy imports, with Brent crude trading at $104.51 per barrel amid ongoing geopolitical concerns.
