The Indian equity benchmarks have found themselves in a tough spot because of the on-going middle east conflict, which entered into its ninth day on Sunday. In the coming week, analysts do not expect for the tides to turn and anticipate volatility to remain elevated.
"Nifty has formed a bearish candle with a lower high and a lower low signaling lack of follow through to previous session pullback and continuation of the overall corrective trend. Volatility is likely to remain elevated amid uncertain global cues and escalating geo-political tension," said Bajaj Broking Research.
The index will find key support between 24,000 and 23,800, while on the upside, key resistance lies at 24,700 and 25,150 as per Hitesh Tailor, Research Analyst at Choice Broking.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services says that developments in the middle east are going to be key monitorables for markets, "alongside movements in crude prices and broader global risk sentiment."
Nifty Bank
The bank nifty index is also going to endure heightened volatility amid the current geo-political situation in the middle east.
"Index formed a sizable bearish candle with a lower high and lower low signaling continuation of the corrective trend. Index in the process closed below last month low highlighting downward bias. Volatility is likely to remain elevated amid uncertain global cues and escalating geo-political tension," said Bajaj Broking Research.
On the higher side 59,000 is likely to act as immediate resistance sustaining below the same will keep the bias down, while 57,000-56,600 levels will act as key support.
Market Recap
Indian equity benchmarks resumed declines for the fourth consecutive week over mounting tensions in Iran. The BSE Sensex and the NSE Nifty 50 slumped 2.8% each during the week. On Friday, the benchmark indices resumed rout after a breather on Thursday. The 30-stock index fell over 1,000 points and the 50-share index settled near 24,450.
Thirteen of 15 NSE sectoral indices traded lower, led by the NSE Nifty Financial Services Index, down 2%.
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