New Delhi, Feb 28 Heightened geopolitical tensions in the Middle East following the escalation of hostilities between Israel and Iran are expected to weigh on global risk sentiment, with Indian equity markets likely to open on a weaker note, market participants said on Saturday.
The caution follows Israel’s reported “preventive” strikes on Iran, which led to explosions in Tehran and raised concerns over a broader regional conflict. In response, the Israel Defense Forces (IDF) said sirens were activated across Israel and advance alerts were issued to residents, advising them to remain close to protected areas amid the threat of potential missile attacks.
Analysts noted that geopolitical flare-ups typically prompt a shift towards safe-haven assets in the near term, exerting pressure on equities. However, they indicated that the downside in Indian markets may be relatively contained, as benchmark indices had already witnessed significant selling pressure in the previous session.
According to experts, while a gap-down or weak opening on Dalal Street is likely on Monday, panic-driven liquidation appears unlikely at this stage. Market direction is expected to remain cautious, with a sideways-to-negative bias, as investors monitor further developments, including any clarity on potential US-Iran diplomatic engagement.
On the technical front, the Nifty 50 has turned weak after closing below its 200-day exponential moving average (EMA), indicating a deterioration in medium-term momentum. The index has formed four consecutive red candles, reflecting growing bearish sentiment.
Immediate resistance for the Nifty is seen in the 25,300–25,350 range, while key support is placed around 25,000–25,050. Analysts suggest that holding above the support band could stabilise sentiment in the near term, while a decisive breach may trigger additional downside pressure.
Market participants expect volatility to remain elevated in the coming sessions, contingent on further geopolitical developments in the region.
