Nifty may slip 100 points at open amid US sell-off, tariff tensions

Indian equity markets are likely to open lower on Tuesday, tracking overnight weakness on Dow Jones Industrial Average and rising global uncertainties. Gift Nifty at 27,760 signals a potential 100-point drop in Nifty at the open. | Photo Credit: iStockPhoto

Indian equity markets are likely to open on a negative note on Tuesday, amid global headwinds. Escalation of geopolitical tensions, Anthropic-led disruption, and settlement of F&O monthly contracts on NSE will keep the market volatile, said analysts.

According to Hariprasad K, Livelong Wealth, early indicators point to a cautious start for Indian equities. GIFT Nifty signals a potential gap-down opening, tracking overnight weakness in US markets, where the Dow Jones declined 1.6%, dampening near-term risk sentiment. “Investor sentiment turned risk-averse amid persistent concerns over AI-driven disruption across industries and renewed tariff tensions after President Donald Trump warned of imposing “much higher” tariffs on countries that “play games.”

Ponmudi R, CEO of Enrich Money, said: “The weakness stems from renewed tariff-related uncertainty, coupled with lingering concerns about AI-led disruptions affecting global technology stocks.” “Investor sentiment remains guarded following President Donald Trump’s rollout of a 10–15% global tariff framework, effective today. While recent adjustments under the US–India trade arrangement provide some clarity, the move introduces near-term uncertainty for export-oriented sectors and may keep risk appetite measured at the start of the session,” he said.

Gift Nifty at 27,760 signals that Nifty may lose 100 points at open.

Traders should also brace for typical Nifty expiry-day volatility, with choppy price action likely until positions roll over and clearer intraday direction emerges, he further said. “While the broader sentiment remains constructive on the back of domestic resilience, the market is expected to stay range-bound with elevated volatility unless fresh triggers provide decisive momentum.”

Despite a fall in US stocks overnight, equities in Asia are relatively stable, with most eking out marginal gains.

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said on the derivatives front, the 26,000 strike holds the highest Call open interest at 1.85 crore contracts, capping the upside, while the 25,500 strike has significant Put open interest of 1.31 crore contracts, offering strong support; the PCR at 0.97 reflects neutral sentiment. “With India VIX at 14.17 indicating moderate volatility, the index is likely to remain range-bound between 25,500 and 26,000 in the near term, and a decisive breakout beyond this band could trigger fresh directional momentum.”

Published on February 24, 2026