The Nifty ends 35 points higher, while the Sensex was up by 106 points
Shrikant Chouhan,
Head Equity Research,
Kotak Securities:
Mumbai, May 7, 2025:
Today, the benchmark indices witnessed recovery from the lower levels. The Nifty ends 35 points higher, while the Sensex was up by 106 points. Among sectors, the Capital Market Index was the top gainer, rallying over 3 percent, whereas the Defense Index shed over 1 percent. Technically, after a weak open, the market bounced back sharply from the day's lowest point, over 200/ 500 points.
We are of the view that the current market texture is non-directional; perhaps traders are waiting for either side breakout. On the higher side, 24500/81000 would be the immediate breakout level for traders. Above this level, the market could move up to 24600-24650/81300-81500. On the other side, a dismissal of 24300/80500 could accelerate the selling pressure. Below this level, the market could retest the level of 24200/80200. Further downside may also continue, which could drag the market down to 24125-24100/80000-79800.
Satish Chandra Aluri, Lemonn Markets Desk, adds; "Benchmark indices closed higher with marginal gains on Wednesday, despite escalating tensions with the neighbouring countries. Broader Mid and Small caps recovered from yesterday’s losses to close higher.
Markets opened lower in the morning following the rising tensions. However, markets soon recovered to trade largely flat throughout the session and probably heaved a sigh of relief as the message from the Indian side stressed the calibrated and targeted nature of strikes all while exhibiting the intent to avoid further escalation. Calls from global leaders for restraint and likely pressure from diplomatic channels will help the situation from deteriorating further. As such, markets have proved to be resilient at the moment and will continue to be influenced by further developments. Other macro factors also contributed to the resilience with India announcing a trade deal with UK and likely on the verge of a deal with US helped calm the trade war worries. Among sectors, Pharma and FMCG were the laggards with the former weighed down by Trump’s tariff threats and easing rules for domestic manufacturing in the US.
On the technical front, Nifty 50 reclaimed 24400 levels. On the upside, expect 24500 to continue to act as an immediate resistance zone while 24300 acts as immediate support on the downside."
