🌍 Israel-Iran Conflict: US Entry Escalates Tensions
The flames of war have intensified. The US has supported Israel by launching strikes on Iran's nuclear sites. In response, Iran has threatened retaliation. Fears of a major war in the Middle East have created volatility in the markets. This geopolitical tension is expected to have a direct impact on investor sentiment and market performance.
📉 Wall Street to Set the Tone
There wasn't much movement in US markets on Friday:
Dow Jones: Closed with a 0.08% gain
S&P 500: Fell 0.22%
Nasdaq: Dropped 0.51%
Indian markets will take cues from Wall Street on Monday. If global tensions don’t escalate further, a slight relief rally could be seen.
📈 IPO Storm: A Test for Investors
This week, 13 new IPOs are hitting the market, aiming to raise around ₹16,000 crore.
HDB Financial Services – the NBFC arm of HDFC Bank – will be the biggest attraction.
8 companies will list on the SME segment as well.
Investors will need to decide carefully where to allocate their funds.
🏢 Corporate Actions Galore
Around 48 companies will announce dividends, stock splits, rights issues, or bonus shares. Notable names include:
HDFC Bank
Vedanta
HUL
Polycab
Bajaj Finserv
Cipla
These announcements will impact individual stocks and overall market sentiment.
💹 FII vs DII: Who Will Dominate?
On Friday, FIIs bought stocks worth ₹7,940 crore.
DIIs sold stocks worth ₹3,049 crore.
However, FIIs have sold a total of ₹4,192 crore in June so far.
If FIIs return to aggressive selling mode, it could trigger deeper corrections. DII activity will also be crucial in maintaining balance.
📊 Technical Outlook: What’s Nifty’s Next Target?
According to technical charts, Nifty formed a bullish candle on Friday.
Next resistance level: 25,200
Post-breakout target: 25,500
Key support level: 24,700
Danger zone: Below 24,400, downside risk increases significantly
💱 Rupee & Crude Oil: Two Major Factors
Rupee: Closed at ₹86.58 per dollar on Friday; Trump's cautious stance gave some relief
Crude Oil: Up 10% in the past month
WTI: $74.04
Brent: $77.01
If the Middle East conflict worsens, oil prices could spike further—bad news for markets.
📅 What to Expect on Monday?
If US-Iran tensions escalate, markets could see a sharp fall
HDB Financial’s IPO may help stabilize sentiment somewhat
Positive cues from Wall Street could limit the downside
Technicals remain strong, so a lower circuit is unlikely