Indian Stock Market Outlook: Sensex and Nifty 50 Performance Expected Amid US-Iran Tensions

Indian Stock Market Sees Sharp Decline on Friday Amid Global Uncertainty

The Indian stock market witnessed a steep sell-off in the final hour of trading on Friday, May 29, resulting in a significant decline in both the Sensex and Nifty 50 indices. The Sensex plunged nearly 1,300 points, while the Nifty 50 slipped to an intraday low of 23,485.

By the end of the session, the 30-share Sensex had fallen 1,092 points, or 1.44%, to close at 74,775.74. The Nifty 50 also finished in the red, shedding 359 points, or 1.50%, to settle at 23,547.75. This sharp decline has raised concerns among investors, who are now bracing for a potentially volatile market in the coming week.

Market Outlook for Next Week

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According to Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, the Indian markets are likely to enter the upcoming week with heightened volatility and a strong dependence on global developments. Hariprasad noted that market participants are expected to remain selective and cautious while closely monitoring developments in West Asia and global commodity markets.

Hariprasad emphasized that macroeconomic and geopolitical developments continue to exert a greater influence on market sentiment than company-specific fundamentals. As a result, disciplined risk management, selective stock picking, and close monitoring of global developments are likely to remain critical for navigating the near-term market environment.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Market Trading Strategy for Next Week

Ajit Mishra, Senior Vice President of Research at Religare Broking, advised that given the prevailing backdrop of geopolitical uncertainty, elevated volatility, currency fluctuations, and mixed global macro signals, participants should maintain a cautious yet selective approach. Mishra emphasized that sectorally, energy, commodities, and selective domestic-facing themes continue to display resilience, while caution is warranted in sectors vulnerable to global growth moderation, currency volatility, and rising input costs.

Mishra added that traders should avoid excessive leverage and maintain disciplined risk management practices amid heightened event-driven volatility.

Key Technical Levels to Watch

Sensex:

• Immediate resistance is placed near the 75,800–76,000 zone
• Broader 76,500–76,700 range remains a major resistance and supply area

Nifty 50:

• Immediate resistance levels are placed at 23,900 and 24,100
• Support is seen at 23,400 and 23,200

Bank Nifty:

• Despite weakness, Bank Nifty managed to close above the previous week's settlement
• Immediate support is placed in the 53,900–53,555 zone, while resistance is seen at 55,000 and 55,300.