Indian equity markets experienced significant selling pressure on Monday, with the BSE Sensex plunging 821.73 points, or 1.11%, to 73,421.61, while the NSE Nifty 50 declined 286 points, or 1.22%, to 23,080.70 in early trade. According to reports from LiveMint, the market weakness was driven by escalating geopolitical tensions in West Asia and a broad-based selloff in global technology stocks. The primary catalyst behind the market decline was the renewed escalation of hostilities between Iran and Israel, which reignited concerns over regional stability and global energy supplies.
The conflict between Iran and Israel pushed crude oil prices sharply higher, with Brent crude advancing 3.45% to USD 96.30 per barrel and WTI crude gaining 3.22% to USD 93.46 per barrel. As reported by LiveMint, these elevated oil prices raised concerns about inflationary pressures and potential impact on oil-importing economies such as India. Additionally, investors grappled with a steep correction in global technology stocks, which spilt over into Asian markets and further dampened risk appetite. Gold prices eased 0.48% to USD 4,310.03 per ounce as traders assessed the broader implications of the geopolitical developments.
According to Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, the Nifty 50 had a volatile week but recovered slightly from its weekly low, with price action continuing to hover around a crucial support zone. As reported by LiveMint, the 23,150–23,000 region emerged as a key confluence area comprising the gap support and the 61.8% Fibonacci retracement level. From a trend perspective, the Bearish Dow structure remains intact, with the weekly chart continuing to exhibit a lower top–lower bottoms formation. The index remains below key moving averages, while momentum oscillators continue to hover in bearish territory. The immediate resistance is placed near 23,560, with a sustained breakout above this level potentially paving the way for a move toward 23,800 and higher levels. Conversely, any close below 23,000 could negate the bullish expectation and expose the index to further downside pressure toward 22,800 or lower.
Despite market weakness, HDFC Securities analysts have identified specific investment opportunities. Viyash Scientific is recommended as a buy at ₹256 with a stop-loss of ₹240 and target of ₹285, as the stock has broken out from a bullish cup and handle pattern on the weekly chart. According to the analysis, the primary trend remains bullish with higher tops and higher bottoms on daily and weekly charts, and the stock is positioned above all medium to long-term moving averages. Federal Bank is suggested as a buy at ₹306 with a stop-loss of ₹295 and target of ₹325, as the stock is above all key moving averages and has recently surpassed the double-top resistance at 301. The analysis notes that small private banks have been outperforming the banknifty index and this trend is expected to continue.
