Indian Stock Market Weekly Outlook: Gap-Up Opening Expected Amid Rising Global Tensions

The Indian stock market is likely to open higher in the coming session, following fresh geopolitical developments involving the United States and Iran. Benchmark indices like the Sensex and Nifty 50 are expected to begin Monday’s trade on a gap-up note, driven by the escalation of the Israel-Iran conflict and the U.S. military’s direct involvement.

Global Tensions Push Market Volatility, Crude and Gold in Focus

Market analysts suggest that the recent U.S. strikes on Iranian nuclear sites, conducted in alliance with Israel, are poised to rattle investor sentiment globally. The use of B-2 stealth bombers to target critical Iranian facilities has significantly raised the geopolitical stakes. In response, Iran has vowed retaliation, raising the threat of a wider conflict in the Middle East.

U.S. Market Impact and Evacuation Measures

The sudden escalation is expected to weigh on the global financial outlook. Experts believe that the U.S. economy and broader markets were unprepared for a conflict of this magnitude. In a precautionary move, the U.S. government has reportedly launched evacuation flights from Israel, highlighting the seriousness of the developing situation.

Indian Market Performance and Technical Levels

Despite the uncertain global backdrop, Indian equities ended the previous week on a strong note, recovering sharply after three days of losses. The Sensex closed Friday with a 1.4% gain, hitting an intraday high of 82,494.49, while the Nifty 50 surged to 25,136.20, maintaining a similar momentum.

Technical analysts are optimistic about the market’s ability to sustain higher levels. Sugandha Sachdeva, Founder of SS WealthStreet, pointed out that Nifty has successfully held above the 24,500 support level, a critical technical mark. “A breakout beyond the 25,200 resistance could indicate a bullish move toward 25,700 in the coming sessions,” she noted.

As for Bank Nifty, Sachdeva believes that the index is currently well-supported near 55,400, and maintaining this level could open room for an upward target of around 57,180.

Market Outlook: Proceed With Caution

While the current signals point toward a positive opening, investors should tread cautiously given the unpredictability of global conflict and its impact on financial markets. Crude oil volatility, foreign institutional investor flows, and regional defense updates will be key drivers to watch in the week ahead.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial advice. Investors are advised to do their own research or consult a professional advisor before making any investment decisions.