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News Topical, Digital Desk : Trade Setup for March 2: Following the US and Israel's attack on Iran, markets are expected to see significant activity on Monday, March 2nd (Share Market News). This was indicated by market movements in the last 30 minutes of Friday's trading session. Nifty tried to defend the 25,300 level throughout the session, but fell to 25,150 within two minutes and failed to recover until closing. Global markets will now react to the weekend's events on Monday. US futures will resume trading on Sunday evening, while Asian and Indian markets will react on Monday morning.
A close look at gold, silver, crude oil, and the US dollar
could see a greater impact on asset classes other than equities before the Indian market opens. Crude oil, gold, the US dollar, and the yen will be closely monitored. Barclays said in a note that oil prices could reach $100 per barrel.
What will happen if crude oil prices rise?
If oil prices rise, it will be negative for Indian downstream oil refiners, while upstream companies like ONGC and Oil India will benefit. Rising oil prices could also put pressure on the currency.
These companies have exposure to the Middle East . The attack on Iran could have a greater impact on Indian companies with significant business in the Middle East. Iran's retaliatory actions have reached Dubai, Kuwait, and Abu Dhabi in the GCC region. Companies like L&T, Kalyan Jewellers, Welspun Corp, and KEC International have exposure to the Middle East. A strengthening dollar impacts metal stocks! Nifty is already below its 200-Day Moving Average, which accelerated Friday's sharp decline. 25,000 is the first level on the downside, followed by 24,919, 24,571, and 24,679. A strengthening US dollar could impact metal stocks. The Nifty Metal Index was the third-best performing sectoral index in February.
Nifty may fall According to Nagaraj Shetti (HDFC Securities), the trend of Nifty is sharply down and a fall to 24,700 is possible in the near term. 25,400 is the immediate resistance. Nifty Bank defended the level of 60,800 throughout the week but could not do so on Friday. The index closed at the important support of 60,500. If the market opens gap down on Monday, further fall is possible.
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