The Indian stock markets closed in positive territory on Friday, although they retreated from their peak levels in the final hour. This shift was influenced by escalating tensions between Iran and Israel, leading to a surge in oil prices and impacting investor confidence. The Nifty index concluded 0.49% up at 23,114.50 points, while the Sensex rose by 0.44% to settle at 74,532.96 points.
From a technical viewpoint, market experts noted that the Nifty index is encountering resistance around the 23,350 level, signaling a preference for selling on upticks. Analysts caution that a breach below the 23,000 mark could extend the downside towards 22,900–22,950, with a strong supply zone at 23,600 likely to restrict significant recoveries.
During the trading session, market indices initially climbed higher; however, heightened volatility emerged in the final hour as crude oil prices surged on supply disruption fears. Reports indicated that tensions in the Middle East could disrupt global oil supply, posing a significant concern for countries reliant on oil imports like India.
Profit booking was observed towards the market close, with the Nifty MidCap ending 0.67% higher and the Nifty SmallCap edging up by 0.09% after relinquishing some intra-day gains. Notably, realty stocks underperformed, with the Nifty Realty sector declining by approximately 1%. Conversely, defensive and rate-sensitive sectors exhibited strength, with Nifty Pharma and Nifty PSU Bank emerging as top performers, while Nifty IT closed the session with a gain of 2.17%.
Market analysts anticipate cautious investor behavior in the short term, monitoring geopolitical developments and oil price movements closely. Meanwhile, the global crude oil benchmark Brent surged in the latter part of the trading day due to escalating tensions in the Middle East. Additionally, the Indian rupee depreciated by 1.17% to a record closing low of 93.71 against the US dollar, with technical indicators suggesting a bullish outlook for the USDINR pair.
