New Delhi: Escalating geopolitical tensions in the Middle East between Israel and Iran are poised to cast a shadow over global markets, including India’s bustling stock exchanges. Experts warn of a cautious start to trading on Monday as investors brace for uncertainty.
The flare-up intensified after Israel launched preemptive strikes on Iranian targets, triggering explosions in Tehran and heightening fears of retaliation. Sirens blared across Israel, with mobile alerts urging citizens to seek shelter amid potential missile threats.
Market analysts predict a subdued opening rather than a panic-driven sell-off. ‘Investors are shifting towards safe-haven assets like gold and bonds in the short term,’ noted one veteran trader. Friday’s session already saw sharp declines, but Monday’s volatility is expected to be contained unless tensions spiral further.
Dalal Street remains on edge, awaiting clarity on possible US-Iran negotiations. The Nifty 50 index closed below its 200-day exponential moving average, signaling medium-term weakness after four consecutive red candles.
Technical levels to watch: Resistance at 25,300-25,350 and support between 25,000-25,050. Holding above support could stabilize sentiment, but a breach might accelerate downside pressure. Broader indices like Sensex are likely to mirror this choppy pattern.
While domestic fundamentals remain solid, external shocks like this often trigger risk aversion. Investors are advised to monitor headlines closely and diversify portfolios amid the fog of war.