Home / Business and Economy / Nifty Rebounds Amid Geopolitical Fears, Eyes Key Levels
Nifty Rebounds Amid Geopolitical Fears, Eyes Key Levels
22 Feb
Summary
- Nifty 50 experienced a rebound after a sharp sell-off due to US-Iran tensions.
- Key support levels are identified around 25,400 and resistance near 25,700.
- Markets anticipate consolidation next week, influenced by global events.
The Nifty 50 index staged a notable rebound on Friday, recovering from a sharp decline that occurred on Thursday. This prior sell-off was attributed to escalating geopolitical tensions between the US and Iran, which heightened global risk aversion. After an initial dip in early trading, the index reversed course due to renewed buying interest, climbing significantly. However, the upward momentum could not be sustained, leading to a period of choppy trading for the remainder of the session.
Analysts have identified crucial support levels for the Nifty, with immediate support pegged around the 25,400 to 25,350 zone. A decisive break below 25,350 could potentially lead to further declines towards 25,150 and the 25,000 mark. On the upside, resistance is anticipated in the 25,700 to 25,800 range. Volatility is expected to persist in the near term, with the index likely to trade within the 25,300 to 25,800 band.
Globally, heightened US-Iran tensions continue to be a significant factor, influencing market sentiment and crude oil prices. Meanwhile, encouraging US inflation data, with CPI easing to 2.4%, suggests moderating price pressures. Looking ahead, market participants will be closely watching geopolitical developments, progress on the India-US trade deal, India's Q3 GDP figures, and US jobless claims, with consolidation anticipated in the coming week.
