NIFTY, SENSEX likely to open lower as crude oil surges above $110 as US-Iran exchange fire; check details

NIFTY and SENSEX are likely to open lower on Tuesday, May 5, amid a sell-off in the US market and a fresh escalation of the Iran-US war. Gift NIFTY is around the 24,000 level, signalling a gap-down opening compared to yesterday’s closing of 24,119. Surge in Brent Crude prices to above $114 per barrel is likely to impact sentiments in the domestic markets today.

US benchmark indices closed lower, with the Dow Jones index falling 557 points or 1.13% to close at 48,941. The S&P 500 closed 0.41% lower at 7,200, while the Nasdaq Composite lost 0.19% to settle at 25,067. US benchmark indices declined after a fresh military attack in the Strait of Hormuz region between the US and Iran, which sparked fear of oil supply disruption and sent oil prices higher.

Brent Crude traded around $113 per barrel, while WTI Crude hovered near $105 per barrel. Oil prices remain elevated on Tuesday as Middle East tensions have intensified once again. The US and Iran exchanged fire, targeting energy infrastructure and commercial shipping, raising uncertainty around oil supply through the Strait of Hormuz. The developments came after President Trump announced plans to restore shipping through Hormuz and support stranded vessels

Asian markets are trading mixed with the Hang Seng Index dipping over 200 points, or 0.8%, to 25,880. Nikkei 225 rose 0.38% to 59,513. Investors remain cautious in the Asian markets as expectations around the US-Iran talks continue to fade. Weak sentiments were also triggered after a fresh escalation in the Strait of Hormuz region.

NIFTY50 chart check

The NIFTY50’s daily chart indicates a strong range-bound trading activity for seven consecutive sessions. The index on the daily charts has faced strong resistance at the 24,200 levels. Ahead of the expiry, the 24,200 level remains a crucial zone before it decides on the upward journey towards 24,500. On the downside, the daily 20 EMA level of 23,992 remains a crucial support on the expiry day.

NIFTY50 OI Analysis

Ahead of the expiry, the options data chart for NIFTY50 indicates that the upside for the index remains capped at every 100-point level, as the 24,200 to 24,600 calls witnessed strong open interest addition on Monday. On the downside, the 24,000 puts held the highest open interest, suggesting a crucial support for the index ahead of the weekly expiry.

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