The shadow of conflict looms large over India’s equity markets as Israel-Iran hostilities threaten to disrupt Monday’s trading session. Explosions rocked Iran’s capital Tehran following Israeli preemptive attacks, prompting nationwide alerts in Israel for imminent missile strikes.
Experts foresee a tepid market debut with limited downside, building on Friday’s heavy selling. ‘Geopolitical risks prompt flight to safety, but Indian markets have already priced in some negativity,’ said a leading strategist.
Sentiment on Dalal Street is guarded, with traders eyeing US diplomatic overtures to Iran for de-escalation cues. Prolonged tensions could sustain volatility, but a quick resolution might limit damage.
From a charting perspective, Nifty’s breach of key 200-day EMA underscores bearish momentum, marked by four straight declining sessions. Immediate hurdles lie at 25,300-25,350, while 25,000-25,050 offers a critical floor.
‘If support holds, we could see consolidation; otherwise, deeper corrections loom,’ warned a technical analyst. Sectors like oil & gas, defense, and metals may see swings, with crude price spikes adding fuel to the fire.
Global cues from Wall Street and Asia will also play a role, but the Middle East maelstrom dominates headlines. Prudent investors are hedging bets, focusing on quality stocks resilient to external turbulence.