Indian stock market cautious on June 16: Israel-Iran conflict stirs mixed buy-sell calls

Indian stock markets tread cautiously on June 16 as geopolitical tensions between Israel and Iran fuel mixed buy-sell calls among investors.

The benchmark Nifty 50 index ended the week ending June 13 at 24,718, down over 1%, pressured by rising geopolitical risks and foreign capital outflows. The index has fallen below the psychologically important 25,000 mark, signaling technical weakness.

"As long as the Nifty-50 Index remains below 24,850, weak sentiment is likely to continue and could retest the level of 24,500," analysts warned, highlighting the potential for further downside.

Support levels are expected between 24,450 and 24,330, while resistance is seen in the 24,750 to 24,860 range. A breach below 24,500 could accelerate selling pressure, possibly pushing the index down to 24,300.

The Nifty 50 formed a bearish engulfing pattern on the weekly chart, reinforcing the cautious outlook. Meanwhile, the Gift Nifty futures traded at a premium of nearly 65 points, indicating a tentative positive start.

Market experts also noted that ongoing geopolitical uncertainty and upcoming central bank meetings will likely keep volatility elevated.

"Markets remained under pressure and declined by over a per cent during the week, weighed down by rising geopolitical tensions and mixed global cues," a market analyst said.

In the F&O segment, select stocks like Manappuram Finance Ltd, Biocon Ltd, and Karur Vysya Bank Ltd were recommended for trading, with Biocon showing signs of bullish momentum after breaking above its 200-day moving average.

Overall, investors remain cautious amid the Israel-Iran conflict, balancing mixed technical signals and geopolitical risks that could sway market direction in the near term.

Indian stock markets showed caution on June 16 amid Israel-Iran tensions, with the Nifty 50 index falling over 1% last week and trading below key levels. Experts warn of continued volatility and potential further declines if support levels near 24,500 break amid geopolitical uncertainty and mixed buy-sell calls.