Nifty 50 Index Faces Potential Gap-Down Opening on Monday, Below 24,000 Mark Possible This Week

Global Markets Bracing for Impact of US-Iran War and Oil Production Shutdowns

Key Figures:

• $100: expected crude oil price per barrel
• 20%: decrease in global LNG supply due to Qatar's shutdown
• 24,000: potential breach of the Nifty 50 index
• 15-30 days: estimated time to restart oil and gas production after shutdown

The global markets, including Dow Jones futures and the Indian stock market, are set to open in less than 24 hours with no signs of de-escalation in the US-Iran war. The war has led to partial shutdowns in oil and gas production in several Middle Eastern countries, including Kuwait, the UAE, Saudi Arabia, Iraq, and Qatar. This shutdown is expected to take up to a month to restart and has sent crude oil prices soaring.

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Expected Impact on Markets

Experts predict that crude oil prices will reach $100 per barrel in the next few sessions, which is expected to have a significant impact on the Indian stock market. The Nifty 50 index may breach 24,000 this week, and the majority of oil majors, including Reliance Industries Ltd (RIL), are expected to drag the key benchmark indices in the near term.

Rising Crude Oil Prices and Impact on Gold

The soaring crude oil prices are expected to fuel inflation, hurting the Indian stock market. However, experts suggest a buy-on-dips strategy for gold investors. Rising crude oil prices are also expected to strengthen the petrodollar, which may put the brakes on the gold price rally.

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

Nifty 50 Index Support and Resistance

The Nifty 50 index may open with a gap down and try to approach its current support at 24,200. If the crude oil sustains above $100/barrel, then a break below 24,000 this week is expected. A major support for the Nifty 50 index is 22,500, which may be reached if the index sustains below 24,000 for a few sessions.