Stock market likely to open lower amid global tensions between Iran and Israel
Apr 15, 2024
Mumbai (Maharashtra) [India], April 15 : The stock market indices, Sensex and Nifty, are anticipated to commence trading lower on Monday, influenced by the escalating tensions between Iran and Israel, which have sent ripples across global markets, as per experts.
As per early indications, the Gift Nifty is pointing towards a gap-down start, trading around 22,460, nearly 140 points lower than the previous close of Nifty futures.
Last Friday witnessed a significant decline in both Sensex and Nifty 50, with each index experiencing a slump of around 1%. Sensex closed at 74,244.90, down by 793.25 points, while Nifty 50 settled at 22,519.40, down by 234.40 points.
This downward trend was attributed to selling across various sectors amidst weak global cues.
Technically, Nifty 50 formed a long negative candle on the daily chart, breaking below the immediate support level of 22,650, signaling a crucial top reversal pattern and suggesting further weakness ahead.
Additionally, on the weekly chart, a small negative candle with an upper shadow hints at a reversal pattern, indicating a bearish outlook.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Despite the short-term negative sentiment, market analysts observe support at 22,500 on a closing basis, which could potentially prevent a significant correction."
However, sustained trading above 22,500 could push the index towards 22,650 - 22,700 levels, while a drop below 22,500 might initiate a correction of 200-250 points on the downside.
In the global market scenario, Asian markets also declined on Monday, following losses in US equities amid heightened geopolitical tensions in the Middle East.
Crude oil prices remained muted after Iran's drone and missile attacks on Israel, while gold prices rose due to safe-haven demand, reaching USD 2,359.92 an ounce.
Investors are advised to closely monitor the geopolitical developments and their impact on global markets as trading commences today.
The Indian stock market is expected to exhibit volatility in response to unfolding events on the international stage.
