Bulls dominate domestic trading following historic West Asia diplomatic breakthrough
Investors accumulated shares rapidly on Monday morning, driving domestic benchmark indices to spectacular gains on the back of historic diplomatic breakthroughs in West Asia. The BSE Sensex jumped over 1,128 points to trade comfortably at 76,656.61, while the NSE Nifty 50 advanced 350.40 points, hovering close to the 23,973.30 mark. This aggressive buying pattern triggered a sharp reversal from recent market consolidations, reflecting widespread confidence across Asian trading floors.
A sudden de-escalation of geopolitical friction serves as the primary driver behind this financial surge. US President Donald Trump announced the completion of a peace deal with Iran, liquidating the naval blockade around the crucial Strait of Hormuz to restore global energy channels. Consequently, international oil benchmarks reacted immediately. Brent crude dropped 4.70 percent to USD 83.23 per barrel, a relief for major oil-importing nations like India, which relies on foreign crude to meet over 80 percent of its domestic energy requirements.
Global Triggers and Local Impact
Banking expert Ajay Bagga observed that a heavy economic cloud has finally lifted. The two nations intend to sign an official Memorandum of Understanding in Geneva on June 19, which kickstarts a 60-day evaluation framework aimed at Iranian nuclear disarmament and economic sanctions relief. Financial sentiment echoed across Asia, with Japan’s Nikkei soaring 4.81 percent and South Korea’s Kospi jumping 5.32 percent.
Market experts urge traders to keep an eye on defined boundaries. Shrikant Chouhan of Kotak Securities pointed out that the daily charts show a definitive reversal setup, establishing a positive long-term bullish trend. Traders should look at 23,500 and 23,350 as vital support zones for the Nifty, while the upper targets stretch toward 24,100. Conversely, slipping below 23,350 could signal that the upward momentum is losing its grip, prompting positional investors to liquidate their holdings.
DISCLAIMER: Prameya or Prameya News7 does not endorse the views or recommendations expressed by experts/brokerages in this article. These are solely their opinions. Readers are advised to consult with a qualified financial advisor before making any investment or trading choices
