Trade Setup: Will crude oil shock again? The Nifty is now trading at 22,000.

News Topical, Digital Desk : Trade Setup: The stock market witnessed a sharp decline for the third consecutive day on Friday amid escalating conflict in West Asia (Israel-Iran War) and rising international crude oil prices. The benchmark Nifty 50 index continued its decline, and market sentiment remained weak. The index moved further away from its 200-day moving average as selling pressure increased in the market.

Nifty opened weak at an 11-month low,
and the market remained under pressure throughout the session. The occasional intraday recovery was used by traders as a sell-on-rise opportunity. Nifty closed at an 11-month low and slipped below 23,200 for the first time since April 7, 2025. The index fell 488 points to close at 23,151. Last week, Nifty 50 fell by more than 5 percent. This was the market's worst weekly decline in the last four years. The previous week, the index had fallen by more than 5 percent in a week in June 2022. Due to this sharp decline, the total market cap of BSE-listed companies declined by approximately ₹20 lakh crore this week. Since the start of the West Asia conflict, the market cap of BSE companies has declined by more than ₹33 lakh crore.

What could happen next?
The future direction of the market is likely to depend on the situation in the West Asia conflict, the movement of crude oil prices, and fund flows from foreign investors. If crude oil prices rise... If foreign investor outflows continue and crude oil prices remain high, market sentiment may remain cautious. However, if there are signs of easing geopolitical tensions, the market may find some relief. Nifty could reach 22,000. According to Nagaraj Shetty of HDFC Securities, the market trend currently remains sharply downward. He said that next week, Nifty could show a slight recovery from the lows around 22,900. If this doesn't happen, the index could move towards the 22,500 to 22,000 levels in the near future. Currently, the 23,500 level is considered immediate resistance. The short-term trend is weak! According to Rupak Dey of LKP Securities, the trend may remain weak in the short term, and any upside could lead to selling. On the downside, the index could slide to 23,000 or 22,800, while resistance is at 23,400. Dhupesh Dhameja of SAMCO Securities said that the index has bounced off the demand zone of 24,300 and is now moving towards resistance around 25,080. He added that if the index remains above 24,500, a pullback to the 25,080 to 25,320 zone is possible. If this level is broken, there could be a risk of a further decline to 24,300. 

Read More: Trade Setup: Will crude oil shock again? The Nifty is now trading at 22,000.