Gap down in stocks is expected

This week, everyone in the stock market is predicting a gap-down opening. What if both sides, angered by Khamenei's death, escalate their violence? This fear is haunting the market.

Technical analysts say that if the Nifty breaks below 25,000 and breaks the crucial support at 24,850, it could fall to 24,500 or 24,400. While fundamental analysts say that investors may seek safe havens in gold and silver by selling stocks, the predictions on the technical chart may be possible.

If traffic in the Strait of Hormuz, which lies between the Gulf of Oman and the Persian Gulf, is disrupted, our affairs will be in jeopardy. 20% of the world's crude trade passes through it. If Hormuz is closed, crude prices will skyrocket. Freight costs will increase. Global inflation will rise. Central banks will work to keep economic growth and inflation in check.

Iran's contribution to global crude exports is 3%. Saudi Arabia and the UAE can only temporarily make up for Iran's lack by increasing production. However, if Hormuz is closed, the situation will get out of hand. Will the price of crude cross $75 and reach that level? That question will be the one that will haunt the stock market this week.