Nifty, Sensex Set for Explosive Gap-Up Start: GIFT Nifty Soars 350 Points

The Indian stock market is buzzing with anticipation as the Nifty 50 and Sensex gear up for a potential gap-up opening on April 8, 2025. Signals from GIFT Nifty, which surged by 350 points, combined with a robust rally in Asian markets, suggest that domestic frontline indices are poised for a strong start. After a turbulent Monday that saw the steepest single-day drop in 10 months, this rebound could bring much-needed relief to investors. In this blog, we’ll unpack the latest market signals, key levels to watch, and what this gap-up start could mean for traders and investors alike.

Table of Contents

1. Introduction: Nifty and Sensex Eye a Strong Rebound
2. Why GIFT Nifty’s 350-Point Jump Matters
3. Asian Markets Rally: A Global Boost for India
4. Key Levels to Watch for Nifty and Sensex
5. What Triggered Monday’s Crash?
6. Will the Gap-Up Start Sustain?
7. Expert Tips for Traders
8. Conclusion: A New Day for Indian Markets

Introduction: Nifty and Sensex Eye a Strong Rebound

Nifty and Sensex investors have been on a rollercoaster ride lately, with Monday’s session delivering a brutal 3%+ drop. However, hope is on the horizon. As of 7:35 AM on April 8, GIFT Nifty was quoting at 22,652.5—a 1.5% jump from its previous close—hinting at a gap-up start for the Nifty 50 and Sensex. This optimism isn’t isolated; Asian markets are also staging a powerful recovery, setting the stage for a bullish opening in India. Let’s dive into the details driving this potential turnaround.

Why GIFT Nifty’s 350-Point Jump Matters

GIFT Nifty, traded on the NSE International Exchange in GIFT City, serves as a reliable pre-market indicator for the Nifty 50. A 350-point surge—equivalent to roughly 1.5%—signals strong bullish sentiment before the Indian markets open at 9:15 AM. This jump reflects overnight global cues and investor confidence, often acting as a barometer for how the Nifty and Sensex might perform at the opening bell. With GIFT Nifty pointing to a level well above Monday’s close of 22,161.60 for Nifty, traders are bracing for a positive kickoff.

Asian Markets Rally: A Global Boost for India

The rally isn’t limited to GIFT Nifty. Asian markets are roaring back after a global sell-off. Japan’s Nikkei surged 6% on Tuesday, rebounding from a 1.5-year low, while Hong Kong’s Hang Seng and South Korea’s KOSPI posted sharp gains. This widespread recovery follows a brutal Monday when Wall Street and Asian indices tanked amid fears of a U.S.-led trade war sparked by President Donald Trump’s tariff announcements. The bounce-back in Asia suggests bargain hunting and renewed optimism, which could spill over into the Nifty and Sensex.

Key Levels to Watch for Nifty and Sensex

For traders, key technical levels will determine whether this gap-up start has legs. Here’s what to watch:

• Nifty 50:
  • Support: 22,000–22,100 (Monday’s low at 22,161.60 is critical)
  • Resistance: 22,500–22,700 (a break above 22,700 could signal a stronger recovery)
  • A gap-up to 22,650 (aligned with GIFT Nifty) would push Nifty above its 20-day moving average, a bullish sign.
• Sensex:
  • Support: 73,000–73,500 (Monday closed at 73,137.90)
  • Resistance: 74,000–74,500 (a move past 74,000 could ignite further buying)
  • A 1.5% jump could see Sensex open near 74,200, testing its 50-day EMA.

Sustained momentum above these levels could turn the tide after Monday’s bloodbath.

What Triggered Monday’s Crash?

To understand this rebound, let’s rewind to Monday, April 7, 2025. The Nifty 50 plummeted 742.85 points (3.24%) to 22,161.60, while the Sensex tanked 2,226.79 points (2.95%) to 73,137.90. The culprit? A global equity meltdown triggered by U.S. President Donald Trump’s announcement of steep reciprocal tariffs, raising fears of a trade war and U.S. recession. Asian markets followed Wall Street’s lead, and GIFT Nifty’s 875-point discount on Monday morning foreshadowed India’s “Black Monday.” The carnage erased ₹12 lakh crore in investor wealth, making Tuesday’s potential gap-up start a critical pivot.

Will the Gap-Up Start Sustain?

A gap-up opening is exciting, but sustainability is key. Analysts suggest a few factors will influence the day:

• Global Cues: If U.S. futures and European markets hold steady, the Nifty and Sensex could maintain gains.
• Domestic Sentiment: Bargain hunting after Monday’s oversold conditions may fuel buying, especially in beaten-down sectors like IT and metals.
• Volatility: The CBOE Volatility Index hit 50 on Monday—a bear market signal. A cooling VIX could stabilize Indian indices.

If Nifty holds above 22,500 and Sensex breaches 74,000, we might see a broader recovery. However, any negative surprises—like further tariff escalations—could cap the upside.

Expert Tips for Traders

Ready to capitalize on this gap-up start? Here’s what seasoned traders recommend:

• Level-Based Trading: Focus on the key support and resistance levels mentioned. A breakout above Nifty’s 22,700 or Sensex’s 74,500 could be a buy signal.
• Watch Options Data: Monday’s Nifty options showed max Call OI at 23,000 and Put OI at 22,000. A shift in OI could hint at the next move.
• Stay Nimble: Gap-ups can fade fast. Set stop-losses below 22,100 for Nifty and 73,500 for Sensex to manage risk.
• Sector Focus: Metals and realty, hit hard on Monday, may lead the rebound. Keep an eye on Nifty Metal and Nifty Realty indices.

For deeper insights, check out Moneycontrol’s market analysis for real-time updates.

Conclusion: A New Day for Indian Markets

The Nifty and Sensex are on the cusp of a dramatic gap-up start on April 8, 2025, fueled by a 350-point GIFT Nifty surge and an Asian market rally. After Monday’s historic rout, this rebound offers a glimmer of hope for investors. Key levels like Nifty’s 22,500 and Sensex’s 74,000 will be battlegrounds to watch. Whether this marks a true recovery or a fleeting bounce depends on global cues and domestic resilience. One thing’s clear: the Indian market is ready to fight back. Stay tuned, and happy trading! Read more