Market Tumbles as Trump Ends Iran Ceasefire; GIFT Nifty Shows Mild Recovery Amid Geopolitical Fear
Global markets experienced a sharp decline following US President Donald Trump's declaration that the peace accord with Iran was concluded. This heightened geopolitical tension triggered a surge in oil prices, which significantly dampened investor sentiment and sent international stocks plunging on Wednesday.GIFT Nifty showed signs of stabilization overnight, trading 0.26% higher at 23,940.5 as of 5 pm on July 8. This recovery indicator suggests a positive trajectory for the market opening scheduled for July 9.
Benchmark Indices Log Heaviest Losses in Three Months
The benchmark indices registered their worst session in over three months amid the renewed diplomatic breakdown. The Nifty 50 slipped by 2.12%, closing at 23,882.05. Similarly, the BSE Sensex slid 2.15% to 76,503.6.The sharp sell-off was directly attributed to the diplomatic fallout. After the US launched strikes against Iran in response to attacks on ships transiting the Strait of Hormuz, President Trump called the previous ceasefire a "waste of time."
Global Commodities and Futures React Sharply
In international markets, oil prices surged following the escalating geopolitical risks. Brent crude advanced 5% to approximately $78 a barrel. Meanwhile, S&P 500 futures declined by 0.8%. Gold experienced a decline, while the dollar remained volatile.Technical Outlook and Cautious Stance from Experts
Religare Broking Ltd.'s SVP, Ajit Mishra, noted that the Nifty has technically fallen below the crucial support zone of 24,000 to 24,150. The index has also moved beneath its major moving averages, weakening its near-term technical structure.Mishra advised maintaining a cautious stance, emphasizing a stock specific approach with strict risk management. The next key support level is identified in the 23,650 to 23,800 zone, while resistance remains stiff between 24,150 and 24,300.
Immediate Bias Remains Down Amid Consolidation Range
Bajaj Broking Research highlighted that Nifty formed a sizable bearish candle, marked by both a lower high and a lower low. The index breached the support area of 24,250 before falling sharply to test the critical support level of 23,800 during intraday trading.Going forward, the immediate bias remains directional downside below Wednesday's gap down region of 24,350. A breach beneath the key support area of 23,800 could open further declines towards the 23,500 to 23,600 range.
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