Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 7 amid India-Pakistan conflict

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday amid heightened geopolitical tensions between India and Pakistan, and mixed global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,359 level, a discount of nearly 72 points from the Nifty futures’ previous close.

Sentiment may remain sour after Indian Armed Forces conducted ‘Operation Sindoor’, striking terrorist infrastructure in Pakistan. As many as nine sites were struck in the operation, which were the prime targets.

On Tuesday, the domestic equity market indices ended lower, with the Nifty 50 closing below 24,400 level.

The Sensex dropped 155.77 points, or 0.19%, to close at 80,641.07, while the Nifty 50 settled 81.55 points, or 0.33%, lower at 24,379.60.

Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:

Sensex Prediction

Sensex formed a bearish candle on daily charts and a lower top formation on intraday charts on Tuesday, indicating further weakness from the current levels.

“We are of the view that as long as Sensex is trading below 81,000, the weak sentiment is likely to continue. On the lower side, the index could retest the level of 80,300. Further downside may also continue, which could drag the index down to 80,000. On the other side, a dismissal of 81,000 could push Sensex up to 81,300 – 81,400,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

The current market texture is non-directional; hence, levels-based trading would be the ideal strategy for day traders, he added.

Nifty 50 Prediction

Nifty closed the day lower by 81 points amidst weak overall market breadth on May 6.

“A reasonable negative candle was formed on the daily chart, which is signaling a lackluster movement in the market. There was no strength in the upside momentum to break out of the range. The overall chart pattern signal formation of rising wedge type pattern at the highs. Technically, such rising wedge formations after a reasonable upmove shows early signs of reversal pattern on the downside post confirmation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to Shetti, the underlying trend of Nifty 50 remains choppy with weak market breadth, and any weakness below the immediate support of 24,200 could trigger short term downward correction in the market. However, a decisive move above 24,600 could negate the bearish sentiments for the near term.

Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Nifty 50 index formed a bearish engulfing pattern on the daily chart, signaling a pause or short-term reversal in the uptrend.

“However, Nifty 50 still holds above all the key moving averages, keeping the broader trend intact. Yet, if it falls below 24,240, the 9 EMA may no longer act as support and could turn into a barrier for any recovery attempt. The daily RSI remains steady around 65, showing neutral momentum. On the hourly chart, Nifty has broken a trendline connecting recent swing lows, hinting at a possible loss of intraday strength. The support is now seen near 24,200, which also aligns with the hourly Supertrend,” Mehra said.

India VIX rose 3.60 percent and settled at 19, reflecting increased nervousness in the market. If it crosses the 21 mark, the index could slide further towards the 24,050 – 24,000 range.

The resistance remains at 24,530, he added.

“While the overall trend is still positive, the current dip appears to be a regular pullback, which might extend into the next session,” said Mehra.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. said that immediate resistance for Nifty 50 is placed at 24,590, while support is seen near the 200-Day Simple Moving Average (24,050). A sustained move below 24,300 could pull the index towards the 24,200 – 24,050 zone.

VLA Ambala, Co-Founder of Stock Market Today, suggests traders looking for swing trading opportunities with a long-term view to wait for further price dips before initiating any fresh positions.

“Considering these ongoing developments, Nifty 50 can find support near 24,250 and 24,180 and meet resistance between 24,550 and 24,640,” Ambala said.

Bank Nifty Prediction

Bank Nifty index declined 648.10 points, or 1.18%, to close at 54,271.40 on Tuesday, forming a bearish candle on the daily chart.

“Bank Nifty index slipped below its 9 EMA, and the previous swing low of 54,175 has also been breached, making the support zone appear vulnerable. The recent correction can be attributed to mean reversion, as the index faced resistance near the upper Bollinger Band on the daily chart. Nifty Bank has also moved below the 23.6 percent Fibonacci retracement level, placed at 54,460,” said Om Mehra.

According to him, the next crucial support lies near the 38.2% retracement level, around 53,400, which also coincides with the 20-Day simple moving average and adds strength to this zone.

“The daily MACD setup is now tilting to the downside, with the fast line crossing below the slow line, suggesting weakening momentum. However, the primary trend remains bullish. The current decline appears to be a normal correction rather than a shift in the overall trend,” Mehra said.

Hrishikesh Yedve highlighted that on the daily chart, Bank Nifty formed a big red candle, reflecting weakness.

“Immediate resistance for Bank Nifty is placed at 55,000, followed by 56,000, while key support lies at 53,890. Traders are advised to adopt a ‘sell on rise’ strategy in Bank Nifty till it remains below 56,000 levels,” Yedve said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.