Sensex, Nifty likely to slip further as Israel-Iran conflict escalates; oil prices surge 4%

The fear index, India VIX, dropped below the 15 zone, closing at 14.4 (down 2.93 percent), extending its downtrend for another session. This signals some comfort for the bulls.

Indian benchmark indices Nifty and Sensex are set to open lower on June 18, as escalating tensions between Israel and Iran keep global markets on edge. The uncertainty deepened after reports suggested that U.S. President Donald Trump is considering a military strike on Iran, intensifying pressure on Tehran amid its standoff with Israel.

Oil prices jumped over 4 percent as the Iran-Israel conflict intensified, despite no major disruptions to key energy infrastructure or supply. Brent crude rose $3.22 to settle at $76.45 a barrel, while U.S. WTI gained $3.07 to end at $74.84.

In the previous session, Sensex and Nifty slipped as investors remained on edge due to geopolitical uncertainties in the Middle East. Barring IT, all major indices ended lower. The broader market, represented by the mid and smallcap indices, witnessed steeper cuts.

Here are the key levels to watch out for in today's session

Nifty is holding above the 20-day SMA at 24,830, but failed to reclaim the 25,000 zone, which continues to act as a stiff hurdle. The price action is largely sideways within a narrow band, showing indecision post the recent recovery. The RSI slipped to 53 from higher zones, showing a lack of momentum. The immediate support is seen at 24700, followed by 24,650. On the upside, the 25,000-25,170 range remains a key resistance band; a close above this level may revive bullish sentiment.

"The Bank Nifty index is hovering near its 20-day EMA and the midline of the Bollinger Band, signalling a zone of congestion with the decline trendline. The daily RSI has eased to 52, down from recent peaks, suggesting a loss of momentum but not a reversal yet. Meanwhile, MACD remains in negative crossover mode, reflecting the consolidation phase. The support is seen at 55,350, and a breach below this zone may push the index toward 55,000. The resistance is capped near 56,100, followed by 56,200, where the upper Bollinger Band is placed," Om Mehra of SAMCO Securities said.

The fear index, India VIX, dropped below the 15 zone, closing at 14.4 (down 2.93 percent), extending its downtrend for another session. This signals some comfort for the bulls.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.