Nifty 50 Tomorrow: How Will Brent React

Indian benchmark indices BSE Sensex and Nifty 50 performed well on Friday due to stability in the global markets. But not to forget that the Nifty 50 experienced relentless selling pressures from the life high it made recently. We saw a sizable decline of around 5% from the top of 20222.45.

On Friday, the Nifty 50 share price extended its gain for two consecutive sessions and closed above 19650. This was a comfortable closing, both on a weekly and daily basis. On Friday, US markets also did well and concluded the day with a gain of 0.8–1.6% in the benchmark indexes.

Gift Nifty Futures and Nifty 50

GIFT NIFTY was all set to rise by 101 points, taking cues from the upbeat US markets. So, Nifty was eyeing a potential breakout above 19,700, painting a bright picture for Monday. However, this optimism was abruptly interrupted yesterday evening when Hamas launched a surprising attack on Israel, leaving everyone in shock and casting a shadow of uncertainty over the markets.

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Why the Market is Worried Now?

Market participants are feeling very concerned about what might happen when the market opens on Monday because the situation between Israel and Palestine is getting more unstable. Israel’s Prime Minister, Benjamin Netanyahu, declared a “state of war” after a surprise attack by Hamas on Israel.

Now, why might the market not like this news? Well, normally, the market doesn’t react too much to conflicts between Israel and groups like Hamas. But if the price of Brent crude oil suddenly goes up a lot and crosses over $90 again, then that could be a sign of something bad for the market tomorrow. Otherwise, we might see a day of tight range with volatility, but we’ll have to wait and see what happens.

Will Brent Crude Move Higher tomorrow?

The price appreciation of Brent Crude will depend on the amount of instability and uncertainty in the Middle East due to the conflict between Israel and Palestine.

When there is trouble in the Middle East, oil prices usually go up quickly. Then it is believed that important places where oil tankers transit, like the Suez Canal and the Strait of Hormuz, might have problems, which could disrupt the oil supply. But how much the oil prices go up depends on the severity of the situation.

If big oil countries like Iran and the UAE join in, the situation will become even more catastrophic in the future in the context of crude oil prices. Not to forget that Russia and Saudi Arabia have already cut oil production to maintain the price stability on the upside.

Nifty 50 Prediction for Tomorrow 9 October

Nifty 50 share price will appreciate on the higher side once it breaks 19700. But below 19600 the Nifty will enter the bearish zone. So, to continue the uptrend, Nifty must stay above the level of 19650. Sustaining above 19650, the Nifty spot may hit 19730-19800. The risk of downfall will be visible only after breaking 19600.

So below 19600, one must stay cautious of long positions. The Nifty spot may decline up to 19500-19480 tomorrow. Though 19580 will act as the first important support zone as per the hourly chart of Nifty.

Levels of Nifty 50, Nifty Bank and FINNIFTY for Tomorrow

Disclaimer: This article is based on my own beliefs and analysis. I am not a Sebi-certified research analyst so before executing a trade please consult with a certified research analyst. I disclaim all liability for any loss or damage in trading.

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