Pre-Market 11 May 2026: GIFT Nifty Drops 170 Points Amid US-Iran Tensions; Nifty Faces Key Support Test

Indian markets head into Monday’s session after a volatile week of trade. The Nifty 50 closed higher for the second consecutive week, gaining 0.7%, although the index largely remained range-bound amid sharp swings.

Analysts said institutional activity is likely to remain driven by global developments. In particular, investors are closely watching progress in US-Iran negotiations due to their implications for geopolitical stability.

What Happened In Last Week’s Session?

The Nifty traded within a narrow range through the week and struggled to sustain above important resistance levels. The index failed to hold above the 50-day EMA and the 50% Fibonacci retracement level of the February-April correction, signalling caution at higher levels.

At the same time, the index continued to hold above its 20-day EMA, which has acted as a near-term support zone over the past two weeks.

Banking stocks remained under pressure. The Bank Nifty underperformed the benchmark indices and fell more than 1.3% in the latest session with above-average volumes. Technical indicators also pointed towards weakening momentum in the banking space.

India VIX, which measures market volatility, rose 1.3% to settle at 16.84, indicating elevated nervousness in the market.

Global Cues After Market Hours

US markets ended higher on Friday, supported by gains in AI-linked technology stocks and strong labour market data.

The S&P 500 and Nasdaq Composite scaled record highs, helped by gains in Nvidia and Sandisk after stronger-than-expected US jobs data reinforced confidence in the economy.

Asian markets traded mixed on Monday morning as investors balanced optimism around artificial intelligence-driven stocks against geopolitical tensions in the Middle East.

Japan’s Topix rose 0.9%, while Australia’s S&P/ASX 200 declined 0.9%. Hang Seng futures were largely unchanged, while S&P 500 futures slipped 0.1%.

The US dollar appreciated versus other major currencies following strong US employment data and safety flows due to geopolitical concerns.

GIFT Nifty Update

GIFT Nifty index of NSE IX was trading down by 171.50 points or 0.71% at 24,046.50, indicating a negative opening of local shares on Monday.

Technical Levels To Watch

The Nifty index continues to trade within a broader 24,000–24,500 range.

• Immediate resistance is seen around 24,200, followed by the 24,350–24,400 zone. Analysts said sustained trade above 24,200 could trigger a short-term recovery rally.

• On the downside, support is placed near 24,050 and 24,000. A break below these levels could increase selling pressure towards the 23,800 mark.

From an options' perspective, there was considerable writing in calls at strike 24,200, which makes this a critical resistance level. As far as puts are concerned, 24,000 is an important support level.

The Nifty Put-Call ratio slipped to 0.93 from 1.08 in the previous session, indicating weakening bullish sentiment.

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What Should Investors Expect Today?

Markets are likely to begin Monday’s session on a weak note following negative signals from the GIFT Nifty.

Investors are expected to monitor developments in the US-Iran negotiations and global market trends throughout the day. Rising volatility may keep trading activity stock-specific in the near term.

Technically, the 24,000–24,200 zone remains crucial for the Nifty. A decisive move on either side of this range could determine the market’s next direction.

Sources

The Economic Times

Moneycontrol