Daijiworld Media Network - Mumbai

Mumbai, May 10: Investors are expected to stay cautious in the coming week as multiple global and domestic factors combine to pressure market sentiment, including rising geopolitical tensions, crude oil volatility, foreign fund outflows, and a busy earnings calendar.

Benchmark indices extended losses for a second straight session on Friday, with banking and financial stocks leading the decline. The BSE Sensex fell 516 points (0.66%) to close at 77,328.19, while the Nifty 50 slipped 151 points (0.62%) to end at 24,176.15.

Market participants are closely monitoring escalating tensions between the US and Iran, particularly concerns around the Strait of Hormuz, a critical global oil transit route. The uncertainty has contributed to a spike in crude oil prices, although gains later moderated as hopes of de-escalation emerged. Still, fears of potential supply disruptions continue to weigh on sentiment.

Analysts say the Nifty faces key technical levels ahead. Immediate resistance is seen around 24,500–24,600, while support is placed at 24,000 and 23,800. A break below 23,800 could trigger further selling pressure, they warn.

Attention is also shifting to the ongoing March quarter earnings season, with more than 400 companies scheduled to announce results in the coming week. Investors will closely track corporate performance and management commentary for signals on demand trends, margin pressures, and overall economic conditions.

Banking stocks remain under focus as well. The Nifty Bank is expected to find near-term support in the 54,600–54,200 range, while resistance is seen around 56,400 and 56,800. Analysts suggest that volatility is likely to persist, urging traders to maintain disciplined stop-loss strategies.

Overall, market experts expect sentiment to remain sensitive to global developments, crude oil movement, and earnings outcomes, which together will determine the near-term direction of Indian equities.