US-Iran Conflict Escalation: Stock Recommendations Amid Rising Tensions

Indian Stock Market Sees Volatile Week Amid Geopolitical Tensions

The Indian stock market witnessed high volatility during the shortened week of March 30 to April 2, impacted by geopolitical tensions, rising crude oil prices, a weakening rupee, and continued FII outflows. The market ended the fiscal year FY26 on a weak note, with the Sensex falling 1,635 points (2.22%) and the Nifty dropping 2.14%, led by broad-based selling across sectors.

Market Rebounds in FY27, but Uncertainty Persists

The new fiscal year FY27 began on a strong rebound, supported by global cues and hopes of de-escalation in the US-Iran war, with the Sensex gaining 1.65% and the Nifty rising 1.56%, led by banking, IT, and auto stocks. However, gains were partially reversed on April 2 as uncertainty resurfaced following US remarks on the conflict, dragging indices lower again. Overall, the week highlighted fragile sentiment, with geopolitical and oil-related risks continuing to dominate market direction despite intermittent recovery.

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Market Outlook Remains Cautious

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, believes the Dalal Street undertone is cautious to positive. According to Prabhudas Lilladher, the Nifty 50 index has crucial support placed at 21,800. Failing to stay above this level would turn the tide towards bears.

The Nifty 50 index opened on a weak note on Thursday last week, almost 500 points, hitting a fresh new low at the 22,182 zone, but witnessed a strong recovery as the day progressed to end in the green near the 22,700 level with overall bias maintained with a very cautious approach.

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

Bank Nifty Outlook

On the outlook of the Bank Nifty today, Parekh said the index would need to move past the 54,000 zone to improve the bias and, thereafter, anticipate further upward movement in the coming days. The Bank Nifty index needs to sustain the near-term support at the 50,000 zone, failing which, there can be fresh downward selling pressure triggered with the 47,800 zone as the next major support.

Stock Recommendations

Vaishali Parekh recommended the following three intraday stocks to buy or sell on Wednesday: