Rising tensions in the Middle East are expected to affect global equity markets, including India’s Dalal Street, as per market experts. The recent escalation in the Israel-Iran conflict may lead to investor caution, potentially causing a weak opening in the Indian stock market instead of significant panic selling. Concerns arose following Israel’s “preventive” strikes on Iran, intensifying tensions in the region.
Market analysts highlighted that geopolitical risks typically have a short-term negative impact on equities as investors seek safer assets. Despite this, the Indian market experienced substantial selling pressure in the previous session, suggesting that Monday’s trading may not see a sharp decline or a significant gap-down opening. Experts anticipate a cautious sentiment on Dalal Street with a sideways-to-negative trend as traders await clarity, especially regarding any updates on the US-Iran talks.
While the immediate market reaction may be limited, ongoing volatility could persist if tensions continue to escalate. Technically, the Nifty 50 index has shown weakness by closing below its 200-day exponential moving average, indicating a shift towards bearish sentiment. Analysts point out that the index faces immediate resistance in the 25,300–25,350 range, with strong support around 25,000–25,050. Maintaining stability above the support level could bring some relief, but a decisive break below this range might lead to further downward pressure.
