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Indian Stocks Tumble Amid US-Iran Tensions and Rupee Woes
10 May
Summary
- Indian equity benchmarks fell sharply due to geopolitical tensions and rupee weakness.
- The Nifty declined 150.50 points, closing at 24,176.15 on Friday.
- Analysts cite weakening momentum, with potential downside to 24,000 if support breaks.
Domestic equity benchmarks concluded Friday's trading session with sharp declines, driven by escalating geopolitical tensions between the US and Iran. The Indian rupee's weakness and substantial profit-booking in financial sector stocks further contributed to the selloff. Auto and energy stocks also faced selling pressure throughout the day.
The Nifty index saw a significant drop of 150.50 points, ending at 24,176.15, while the BSE Sensex decreased by 516.33 points to close at 77,328.19. Market sentiment deteriorated as the Nifty moved below its 50 Exponential Moving Average on the intraday chart, with the Relative Strength Index (RSI) indicating weakening momentum. Heavy call writing around the 24,200 strike level suggests immediate resistance.
Technical analysts observed that while the market remained under pressure for a second consecutive session, the Nifty held above its 21-day Moving Average support near 24,140. Momentum indicators show signs of improvement, with the RSI around 46. The broader market structure is described as sideways to positive, with expectations of a gradual recovery towards 24,300-24,500, provided the crucial 50-day Moving Average support around 24,000 holds firm.
