New Delhi, February 28: The escalating geopolitical tensions in the Middle East could affect the Indian stock market, as well as global markets. Market experts shared this insight on Saturday.
Experts noted that the growing conflict between Israel and Iran may make investors cautious. However, instead of a panic sell-off, a weak market opening is anticipated.
Concerns heightened when Israel conducted “preventive attacks” on Iran, significantly increasing regional tensions. Initial reports indicated multiple explosions in Tehran, targeting several areas of the Iranian capital.
In response, the Israeli Defense Forces posted on the social media platform ‘X’ that sirens were activated across Israel. Citizens received prior warning messages on their mobile phones, advising them to seek safe locations.
The military described this as a precautionary measure to prepare the public for potential missile attacks.
Market analysts suggest that such geopolitical risks typically have a negative impact on stock markets in the short term, as investors tend to shift towards safer investment options. They also pointed out that the Indian market had already experienced significant selling pressure during Friday’s trading session.
Consequently, the likelihood of a substantial decline or a significant gap down at the market’s opening on Monday appears low.
According to analysts, the atmosphere on Dalal Street is expected to remain cautious. The market may trade within a limited range or experience slight declines as investors await clarity on potential negotiations between the U.S. and Iran.
They believe that the initial market reaction may be limited, but if tensions escalate further, volatility could persist.
From a technical perspective, experts noted that the Nifty50 index closed below its 200-day exponential moving average (EMA), indicating signs of weakness.
One expert stated, “The index has formed its fourth consecutive bearish candle, signaling medium-term weakness and a negative trend.”
Technically, the Nifty50 is facing immediate resistance at the 25,300-25,350 level, while strong support is observed between 25,000-25,050.
An expert remarked, “If the index holds above the support level, some stability may return. However, if this level breaks, selling pressure could increase.”
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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