Mumbai, April 6 (NationPress) The Indian stock markets saw an increase for the third day in a row, fueled by optimism regarding a possible reduction in hostilities between the US and Iran, which has positively influenced investor confidence across various sectors.

The Nifty index surged by 1.12% or 255 points, closing at 22,968.25, while the Sensex climbed by 787 points, translating to a 1.07% increase, finishing at 74,106.85.

Technical analysts indicate that the Nifty is nearing an immediate resistance threshold around 23,000, which remains a significant barrier.

“A sustained breakthrough above this point could pave the way for further gains towards 23,200,” noted an expert.

“On the downside, immediate support is now positioned within the 22,800–22,750 range, which previously served as resistance but has now transitioned to a support level. A stronger support base exists around the 22,550 mark, which was a demand zone during trading,” added a market analyst.

This rally was sparked by reports indicating that both the US and Iran have received a proposal aimed at resolving their conflicts.

According to these reports, a two-phase agreement is under consideration, with a potential final ceasefire agreement possibly materializing within 15 to 120 days.

The proposal allegedly includes measures concerning nuclear limitations and the easing of sanctions, with an “Islamabad Accord” being discussed as part of the structure.

Investor sentiment improved as expectations grew that diminished geopolitical tensions could stabilize global markets and alleviate uncertainty, particularly regarding energy prices and capital movements.

Among individual stocks on the Nifty, Trent, SBI Life Insurance Company, and Titan Company were the standout gainers, reflecting widespread buying enthusiasm.

The broader market also exhibited positive trends, with the Nifty MidCap index increasing by 1.52% and the Nifty SmallCap index rising by 1.29%.

In terms of sectors, indices related to construction and banking led the upward movement. The Nifty Construction Durable index outshined its counterparts, while the Nifty PSU Bank and Nifty Bank indices also experienced significant buying interest.

Conversely, the Nifty Oil and Gas index underperformed relative to the broader market, likely due to fluctuations in crude oil prices amidst ongoing geopolitical changes.

Analysts noted that market momentum remained strong as investors monitored global indicators and developments concerning the proposed diplomatic resolution, which could significantly influence near-term market direction.