The Indian stock market is expected to open flat today. Rising geopolitical tensions in the Middle East continue to weigh on investor sentiment. The conflict between Israel and Iran intensified over the weekend, leading to civilian casualties and increasing concerns around global stability.
As of 8:12 AM IST, Gift Nifty futures were trading at 24,807, suggesting that the Nifty 50 index could open near its last close of 24,718.6. This signals a muted start for the market. Analysts believe traders will remain cautious amid global uncertainty and higher oil prices.
VLA Ambala, Co-Founder of Stock Market Today, said, “Nifty may find support between 24,450 and 24,330. Resistance is likely near 24,750 to 24,860. From here on, any dip should be seen as a long-term buying opportunity.”
The Middle East unrest has already impacted global markets. The MSCI Asia ex-Japan index dropped by 0.2%, reflecting weak investor confidence across Asia. This sentiment is likely to affect Indian equities in early trade.
Crude Oil Prices Surge, FIIs Exit
Crude oil prices have surged due to fears of supply disruption in the Middle East. This is a major concern for India, which depends heavily on oil imports. Rising oil prices could increase transportation and production costs, pushing inflation higher. This adds pressure to India’s economic outlook.
Meanwhile, foreign institutional investors (FIIs) have continued to withdraw funds from the Indian market. In June alone, net outflows have reached ₹54,020 crore. This marks the third straight session of selling. On the other hand, domestic institutional investors (DIIs) have been net buyers for 19 consecutive sessions, providing some support to the stock market.
A weakening rupee due to these outflows could make imports more expensive, adding to inflation worries. This could also limit foreign investor confidence in the short term. Volatility is expected to persist until global tensions ease or crude prices stabilize.
Market Outlook and Investor Strategy
The near-term market outlook remains cautious. Investors are advised to stay focused on quality stocks and long-term goals. Experts suggest avoiding aggressive trades during high volatility. Defensive sectors like FMCG, pharma, and utilities may perform better in this environment.
For today’s session, key levels to watch for Nifty are 24,330 on the downside and 24,860 on the upside. A break beyond either level could lead to sharp moves. Investors should track updates from the Middle East, oil price trends, and institutional flows for direction.
As global uncertainties continue, a disciplined and patient approach will help investors manage risks and find better opportunities in the long run.
