Banking stocks lead losses, crude surge and US–Iran tensions weigh; Nifty nears key 21,700 support zone
By S. JHA
Mumbai, March 30, 2026 — Indian equity markets opened the truncated week on a weak footing, with benchmark indices witnessing sharp selling pressure amid global uncertainty and rising geopolitical tensions. According to a market note by Angel One, the Nifty 50 plunged nearly 2% to close at 22,331, dragged by broad-based weakness and heavy selling in banking stocks.
Sharp Sell-Off on Expiry Day
The brokerage highlighted that despite multiple attempts to hold the 22,450 level during mid-session, intensified selling on monthly expiry led to a steep decline in the second half.
“The truncated week began on a weak note… selling pressure intensified in the second half, leading Nifty to end the session with a sharp cut of around 2%,” Angel One said in its note.
Banking Stocks Among Worst Hit
The sell-off was led by financial stocks, with both PSU and private banks witnessing sharp declines. Markets globally remained under stress, reflecting widespread bearish sentiment.
“Global bourses reeled under significant selling pressure… most major indices ended in the red,” the brokerage noted. Escalating tensions linked to the US–Iran conflict and surging crude prices above $114 per barrel further dented investor sentiment.
Rupee Hits Record Low
Adding to the pressure, the Indian Rupee breached the 95 mark against the US dollar, marking a historic low.
Currency down 4.5% in March
Sharpest depreciation in recent periods
Key Triggers and Developments
Reserve Bank of India capped banks’ net open rupee positions in forex markets at $100 million, impacting Bank Nifty
National Stock Exchange of India initiated its IPO process via OFS route
Rising crude and geopolitical risks triggered second consecutive market fall
Technical Outlook: Critical Support Zone Ahead
Despite the sharp correction, markets are approaching a crucial long-term support zone. “The near-term bias remains weak… however, Nifty is approaching a significant higher time frame support zone of 22,000–21,700,” Angel One said.
RSI (smoothened) near 7, indicating deeply oversold conditions
21,700 aligns with 200-week moving average
Immediate resistance seen near 22,800, with 23,500 as a key hurdle
Historical Pattern
The brokerage pointed out that market cycles often follow sharp corrections with strong recoveries: 15 out of 21 financial years ended positive (71% hit rate)
FY09: 38% crash, followed by FY21: +93% rally
“Capitulation first, then a sharp snap-back — that is the market’s natural rhythm,” the note added.
At a Glance
Nifty Falls: Down 2% to 22,331
Bank Nifty: Slides 3%, banking stocks top losers
Rupee: Hits record low, breaches 95/USD
Key Trigger: Crude above $114, Middle East tensions
RBI Move: Forex position cap impacts banks
Support Zone: 22,000–21,700 crucial for April series
Resistance Levels: 22,800 (gap), 23,500 (strong hurdle)
The Strait the World Is Ignoring Is More Dangerous Than Hormuz
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
