War Tensions Send Nifty Plunging 1,164 Points This Week, What Is The Outlook For Next Week?

How will markets open if tensions escalate between Israel and Iran? Will bulls find relief if the situation remains calm over the weekend? Swati Hotkar of Nirmal Bang believes that if the conflict intensifies, markets could see a sharp decline next week, with a gap-down opening on Monday. She expects the Nifty to potentially drop to levels of 24,600-24,500. On the other hand, if no negative developments arise, she sees a limited chance of a gap-up, though some recovery is likely, with the Nifty aiming for 25,700. Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, shares his perspective, noting that if no escalation occurs, bulls may re-enter the market. He emphasizes that Nifty has strong support at the 25,000 mark, backed by significant put writing and the 50-day exponential moving average at the same level. Based on historical trends, markets often witness profit-booking in the first week of the month, followed by consolidation and an uptrend. The immediate target or resistance for Nifty in the first 2-3 trading sessions could be 25,400-25,500. However, if the war escalates, investors should brace for a steep correction, with 24,800 serving as the bulls' last line of defence.