- Heightened geopolitical risk is exerting downward pressure on a majority of industries and the Nifty 50 Index has more weighing it down.
The Nifty 50 Index (INDEXNSE: NIFTY_50) was down by more than 1% for the second successive session, mirroring the happenings across the broader equities markets. The Index is under pressure as investors turn on risk off sentiment after Israel’s overnight strikes against Iran on Thursday spiked geopolitical risk. Stocks are down across a majority of industries, with focus shifting to safe haven assets.
As of this writing, the Nifty 50 Index was down by 176 points, with only a handful of stocks in defence and oil industries including ONGC, Oil India, Ideaforge and Hindustan Aeronautics propelled by the heightened risk. Meanwhile, the Air India accident has also diluted investor confidence, exerting substantial downward pressure on airline stocks. The risk off sentiment is likely to play out in the near-term, with Iran having launched tens of drones in retalliation against Israel.
Furthermore, the Nifty 50 Index upside is also limited by an underlying fear of a return to trade tariff uncertainty. The United States and China are yet to finalise their trade deal, and the Trump administration is expected to start sending letters outlining unilateral tariffs against the nation’s trade partners who did not take part in direct delegation-led negotiations. That could bring headwinds to export-centric Indian companies that could be exposed to risks in external markets.
Nifty 50 Index Prediction
The Nifty 50 index pivots at 24,806 points and the momentum favours the downside to extend below that level. That will likely see initial support established at 24,634 points. An extended control by the sellers will break below that level and could send the Index lower to test 24,416 points level.
Alternatively, the momentum could shift to the upside if the Nifty 50 Index breaks above 24,806 points. With the buyers in control, primary resistance will likely be at 24,945. However, a stronger momentum will break above that level and invalidate the downside narrative. Furthermore, an extended control by the buyers could pile up gains and test 25,136 points.
