The Indian stock market wrapped up the week on a cautious note, influenced by global tensions, escalating crude oil prices, currency fluctuations, and movements in precious metals. Both the Nifty and Sensex, the benchmark indices, closed the week with minimal changes, leaning slightly towards the negative side. Despite a positive start in the first three trading sessions, a significant sell-off on Thursday wiped out most gains, leading to a volatile session on Friday.
The Nifty saw a 0.16% decline, closing at 23,114.50, while the Sensex finished 0.04% lower at 74,532.96. Analysts pointed out that 23,850 marks the immediate resistance level for the Nifty, followed by 24,000 and 24,150. On the downside, crucial support levels are identified at 22,950 and 22,700, with a potential break below 22,700 triggering accelerated downward movement, according to market experts.
Market participants are closely monitoring the escalating geopolitical tensions in the Middle East, particularly the conflict involving the US, Israel, and Iran. The situation intensified after Donald Trump issued fresh warnings to Iran regarding the crucial global oil supply route, the Strait of Hormuz. Although crude oil prices slightly eased on Friday, with Brent crude around $105 per barrel and WTI crude below $93, they had surged close to $119 earlier in the week amidst rising tensions.
Analysts anticipate the upcoming week to be data-sensitive due to ongoing global uncertainties. Developments in the West Asia conflict and fluctuations in crude oil prices are expected to remain key external drivers, likely dictating the near-term market trend. Traders are advised to exercise caution and adhere to strict risk management practices amidst the prevailing market volatility.
