The markets are bracing for a significantly sharp gap-down opening on negative global cues and rising geopolitical tension. All eyes are now on the Nifty and the key levels at which it may close for the week. Most market observers pointed out that 24,400 could be the first stop for the Nifty before trending even lower to 24,000.

Most market observers pointed out that the Nifty is in consolidation mode at the moment. “If we open below 24,800, then we may further pressure, but 24,400 is still a very strong base, so I don’t expect any major slide below that mark,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.

“Yesterday’s plunge has effectively put an end to the near-term uptrend. We will, however, wait for upswings to be attempted once in the 24,640 vicinity, but with 25,100 as the upside marker for the day. Expect 24,445-24,060, if unable to float above 24,640,” said Anand James, Chief Market Strategist at Geojit Investments.

“A decisive break below this level could lead the index back into a consolidation phase. Given the prevailing uncertainty, we recommend maintaining strict stop-losses in short-term trades, particularly in the midcap and smallcap space,” explained Mishra of Religare Broking, after market hours on Thursday.

What’s triggering this downtrend risk is Israel launching “preemptive” strikes on Iran. Israel has targeted Iran’s nuclear facility and military camps, after US President Donald Trump warned of a possible “massive conflict” in the region.

Adding to that, Israeli Defence Minister Israel Katz declared a state of emergency and said that retaliatory action from Tehran was possible following the operation. “Following the State of Israel’s preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future,” Katz said.

Shrikant Chauhan, Head Equity Research at Kotak Securities, said that the short-term market texture is weak, but a fresh selloff is possible only after the dismissal of 24,825 or below the 20-day SMA (Simple Moving Average). “Below this level, the market could slip to 24,700-24650,” said Chouhan.

One more factor that could affect trade is foreign institutional investors’ (FIIs) buying and selling activity. The FIIs’ long-short ratio is hovering near 40%. “Now, it has to cross and hold above 24,700 zones for an up move towards 24850 then 25000 zones while a hold below the same could see a profit booking decline towards 24444 then 24300 levels,” said Chandan Taparia, Head Derivatives & Technicals and Wealth Management at Motilal Oswal Financial Services.