Indian stock market indices are likely to see further volatility due to the continued military and geopolitical conflict escalation between the US and Iran on Monday. US President Donald Trump stated that the US will claim a "reimbursement" via 20% of the cargo of the ships passing through the Strait of Hormuz in exchange for "guarding" it, a move which is expected to send ripple effects across global and domestic markets.
He further stated the US was "reinstating the Iranian blockade" and that Iran's ships and customers will be prohibited from entering or leaving Hormuz.
ALSO READ: US To Get Reimbursed At 20% Of All Cargo Shipped After Hormuz Takeover, Trump Says
GIFT Nifty Futures traded at a downturn of 0.25% at 24,157.50 points at 10:40 p.m.
The Nifty 50 index is expected to remain in a 24,000-24,300 consolidation band, according to Dhupesh Dhameja, derivatives research analyst, SAMCO Securities.
The Nifty sees support in the 24,100-24,000 zone, the broader bias is expected to remain positive, with a decisive move above 24,300 paving the way towards 24,500-24,600, according to the analyst.
"However, failure to hold the 24,000 mark could trigger profit booking towards the 23,750 level," Dhameja said.
The index is likely to see an immediate hurdle in the 24,330–24,350 zone, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
"A decisive move above the 24,350 mark could trigger fresh buying momentum, paving the way for a sharp upside rally towards the 24,500 level in the near term," Shah said.
On the downside, the 24,130–24,100 zone is likely to provide immediate support, as per the analyst.
Bank Nifty
The Bank Nifty Index finds support at 57,300-57,500 levels, according to Dhameja. Failure to hold 57,500 could invite profit booking towards the 56,800-56,500 zone, according to the analyst.
"The broader bias is likely to remain positive with the potential to extend towards 58,700, followed by 59,000," Dhameja said.
The derivatives research analyst recommended a buy-on-dips approach to traders as long as the index stays above key support levels.
Going ahead, the 58,600–58,700 zone is expected to act as a significant resistance area, as per Shah.
"A decisive breakout above 58,700 could trigger fresh momentum buying, leading the index towards 59,400, followed by the psychologically important 60,000 mark in the short term," Shah said.
ALSO READ: ICICI Prudential AMC Q1 Results: Profit Jumps 26%; Total Income Exceeds Rs 1,700 Crore
Market Recap
Indian equity benchmarks extended gains for the third consecutive trading session, led by the gains in information technology stocks such as TCS and Infosys. The benchmark indices, which slumped at the open, recovered later in the day to close with minor gains. The Nifty 50 ended 0.02% higher at 24,211, while the Sensex gained 0.06% to close at 77,616.40. Earlier, the Nifty fell as much as 0.9% to 24,000.20, while the Sensex declined as much as 712 points to 76,857.
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