After a brutal Monday crash, Trump says Iran war may last four weeks. How will the stock market react on Wednesday?

Following a significant market downturn that erased around Rs 6.59 lakh crore in investor wealth, Indian equities are bracing for further volatility after US President Donald Trump announced that the conflict with Iran may last four to five weeks. The BSE Sensex experienced a drastic decline, plummeting by 2,743 points before recovering slightly to conclude the day down 1,048 points, while the Nifty closed near 24,850. The Indian markets were closed on Tuesday for Holi, leaving traders to assess the geopolitical fallout when trading resumes on Wednesday. Analysts attribute the recent sell-off to escalating tensions in West Asia, particularly after US and Israeli strikes on Iran, which have heightened market fears and driven investors towards safer assets. Experts warn that rising crude oil prices and a weakening rupee could exacerbate inflationary pressures in India, thus affecting fiscal stability and sectors reliant on energy and chemicals. The India VIX has surged, indicating increased uncertainty in the market. Technical analysis suggests that while the market is currently oversold, a potential bounce-back could occur if key support levels of 24,750 on the Nifty and 80,000 on the Sensex hold. Conversely, a break below these levels could signal further declines, with resistance levels also closely monitored by investors.