Nifty Poised for Further Correction Amid Geopolitical Tensions and Weak Technicals; Here's What the Market Setup Reveals -

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Indian stock markets are likely to experience further declines in the near term, as a mix of rising global geopolitical tensions and technical weaknesses in the domestic market unsettles investors. Over the last five trading sessions, the Nifty has already fallen by 480 points, retreating from its all-time high of 26,277 to close at 25,797 on October 1.

Analysts predict continued pressure on key indices, with the Nifty expected to test the 25,550-25,600 range on the downside. Ongoing geopolitical tensions in the Middle East, particularly the intensifying conflict between Iran and Israel, are contributing to the market’s uncertainty.

FII-led rally stalls; retail investors, HNIs remain cautious

Ruchit Jain, Lead Research Analyst at 5paisa.com, suggested that the market may be entering a corrective phase. While the recent rally was driven primarily by foreign institutional investors (FIIs) following the U.S. Federal Reserve’s rate cut, domestic retail investors and high-net-worth individuals (HNIs) have remained on the sidelines, which has limited the market’s overall strength.