Benchmark indices are likely to open on a cautious note on Monday as investors return after a three-day weekend, with sentiment weighed down by a selloff across Asian markets and renewed geopolitical tensions in the Middle East.
GIFT Nifty futures were trading at 24,093 around 8:07 am, indicating that the Nifty 50 could open close to Friday’s closing level of 24,056, suggesting a muted start to the trading session.
The cautious outlook comes despite Indian equities posting their longest weekly winning streak of 2026. The and Nifty ended higher for a third straight week on Friday, supported by easing prices, foreign fund inflows and improving domestic sentiment.
While Indian markets were closed for three days, most Asian equities came under pressure.
Asian markets were down around 0.4% on Monday as investors turned cautious following renewed tensions between the US and Iran. Brent crude prices also climbed about 0.8%, reflecting concerns that the geopolitical situation could once again disrupt global oil supplies.
Although Washington and Tehran have resumed diplomatic engagement, both sides have accused each other of violating an interim ceasefire, keeping investors on edge.
R Ponmudi, Chief Executive Officer at Enrich Money, expects Indian markets to remain cautious.
“Indian markets are expected to trade on a cautious note after the renewed flare-up in geopolitical tensions. That said, broader diplomatic and peace negotiations between the U.S. and Iran remain underway, offering hope that tensions can be contained,” he said.
Gaurav Udani, Founder of Thincredblu, also expects a flat-to-negative opening.
“Nifty is expected to open flat to slightly negative around 24,035, down nearly 20 points, indicating a muted start as the market awaits fresh triggers,” he said.
According to Udani, the Nifty continues to trade above the crucial 24,000 mark, which remains the key support for the market’s short-term trend.
He believes the immediate resistance lies between 24,200 and 24,300. A decisive move above this range could trigger fresh buying, while 23,900-24,000 remains an important support zone.
“For now, a buy-on-dips approach remains favourable as long as Nifty holds above the 24,000 mark,” he added.
Apart from developments in the Middle East, investors will closely track crude oil prices, foreign institutional investor (FII) activity and global market trends.
On Friday, foreign portfolio investors bought Indian equities worth Rs 383.76 crore, while domestic institutional investors invested Rs 5,747.75 crore, providing continued support to the market.
The decline in crude oil prices over the past week had boosted sentiment as lower oil prices are positive for India’s inflation outlook and import bill. However, any renewed spike in oil due to geopolitical tensions could weigh on investor confidence.
For now, analysts expect Dalal Street to begin the week on a subdued note, with investors awaiting fresh domestic and global triggers before taking directional bets.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)