SynopsisIndian markets experienced a significant downturn on Friday, with the Nifty closing 1.5% lower due to broad-based profit booking and increased volatility from MSCI index rebalancing. Analysts anticipate range-bound movement next week, though mid and small-cap stocks may continue to outperform. Global sentiment saw some relief from a potential US-Iran ceasefire.Listen to this article in summarized formatAgenciesIndia VIX, which is a measure of the fear in the markets, rose 8% to settle at 16.18 levels.On Friday, Indian markets witnessed a sharp decline, with the Nifty slipping 1.5% to close at 23,547 amid broad-based profit booking, a sharp rise in the India VIX (+9.4%), and weakness across Metal and Oil & Gas stocks. The pressure intensified during the final hours of trade after the MSCI Global Standard Index rebalancing came into effect, triggering heightened volatility in select stocks amid expected passive fund flow adjustments and portfolio rebalancing activity.Analysts say benchmark indices are likely to remain range-bound this week, although select midcap and smallcap stocks could continue to outperform on the back of healthy earnings momentum and strong domestic liquidity. Some relief has emerged in global market sentiment after reports suggested a 60-day US-Iran ceasefire, raising hopes of easing geopolitical tensions and gradual normalisation of shipping flows through the Strait of Hormuz. However, investors are expected to remain cautious as mixed signals from the ongoing negotiations and recurring geopolitical flare-ups continue to keep volatility elevated across global financial markets.STATE OF THE MARKETSGIFT Nifty (Earlier SGX Nifty) signals a muted startGIFT Nifty on the NSE IX traded higher by 15 points, or 0.06 per cent, at 23,705, signaling that Dalal Street was headed for a muted start on Monday.Tech View: On the downside, the correction may extend further in the near to short term, with the index potentially drifting towards the 23,250 mark and lower levels. On the upside, immediate resistance is placed near 23,700, and selling pressure is likely to persist as long as the index remains below this level.India VIX: India VIX, which is a measure of the fear in the markets, rose 8% to settle at 16.18 levels.US stocks end higherWall Street's major indexes ended at record highs on Friday, capping a week and month of gains as strong results from Dell boosted technology stocks. Investor focus also remained on developments surrounding a potential U.S.-Iran agreement. President Donald Trump said he would make a final decision on the deal on Friday, while Tehran stressed that it was seeking concrete action rather than rhetoric.Asian shares gain Asian share markets firmed on Monday as the boom in all things AI continued to drive demand, offsetting a lack of progress in Gulf peace talks that challenged optimism on a re-opening of the Strait of Hormuz and lifted oil prices.S&P 500 futures rose 0.2% as of 9:44 a.m. Tokyo timeHang Seng futures rose 0.4%Japan’s Topix was little changedAustralia’s S&P/ASX 200 fell 0.2%Euro Stoxx 50 futures fell 0.3%Oil risesOil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.Dollar steadyThe U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes.Stocks in F&O ban todayNILSecurities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.RupeeThe Indian rupee jumped sharply on Friday to log its best single-day gain in nearly two months as likely intervention by the central bank converged with a drop in oil prices, which also briefly lifted the local currency above the 95/USD mark.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. 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