New Delhi: Rising geopolitical tensions in the Middle East are likely to cast a shadow on global equity markets, including India’s Dalal Street, market experts said on Saturday.
Market experts noted that while the escalation in the Israel-Iran conflict may trigger caution among investors, the Indian stock market may open weak rather than witness heavy panic selling.
The concerns came after Israel launched what it described as “preventive” strikes on Iran, sharply escalating tensions in the region.
According to earlier reports, explosions rocked Tehran, and multiple areas in the Iranian capital were hit.
In response, the Israel Defence Forces (IDF) said in a post on X that sirens were sounded throughout Israel and advance alerts were sent to mobile phones, instructing residents to stay close to protected spaces.
The military described it as a proactive step to prepare the public for the possibility of missile attacks.
Market experts said such geopolitical risks usually hurt equities in the short term as investors move towards safer assets.
However, they pointed out that the Indian market had already seen strong selling pressure in Friday’s session.
As a result, Monday’s trade may not witness a steep fall or a major gap-down opening.
According to analysts, the mood on Dalal Street is expected to remain cautious, with sideways-to-negative movement likely as traders wait for further clarity, particularly regarding any announcement on the next round of US-Iran talks.
They believe the immediate reaction may be limited, but volatility could persist if tensions escalate further.
On the technical front, experts noted that the Nifty 50 index has turned weak after closing below its 200-day exponential moving average (EMA).
“The index has formed its fourth consecutive red candle, signalling a weakening medium-term trend and a shift towards bearish sentiment,” an expert stated.
Technically, immediate resistance for the Nifty 50 is seen in the 25,300–25,350 range, while strong support is placed around the 25,000–25,050 zone, as per the market experts.
“If the index holds above the support level, some stability may return. However, a decisive break below this range could trigger further downside pressure,” an analyst mentioned.
