Market Wrap

Indian equity markets staged a strong comeback on 7 May 2026, with benchmark indices recovering sharply after a weak opening session. The Nifty advanced 1.24% to close near the 24,330 mark, supported by broad-based buying across sectors and improving global sentiment. Investor confidence strengthened as volatility cooled significantly, with India VIX falling nearly 7% to 16.68.

Pharma stocks remained the standout performers, as the Nifty Pharma Index surged 2.3% and extended its winning streak for the third consecutive session. The sector continued to attract momentum buying following a breakout from a long-term consolidation phase, signaling sustained bullish interest. Broader markets also remained resilient, with the Nifty Midcap Select Index touching fresh record highs, indicating continued participation beyond frontline stocks.

Global cues remained supportive throughout the session. European markets rallied more than 2% amid easing geopolitical tensions after signs of de-escalation between the US and Iran. The decline in crude oil prices further boosted sentiment across global equities, helping Indian markets recover strongly in the second half of trade. However, investors remain cautious over uncertainty surrounding the proposed US trade deal and upcoming geopolitical commentary from Iran.

What's Ahead

Markets are now approaching a crucial technical zone, with traders closely tracking whether the Nifty can decisively break above the 24,530–24,600 resistance band. A sustained move above this range could pave the way for a rally toward the 24,750 level in the near term.

On the downside, immediate support is placed around 24,200–24,100, which will remain critical for maintaining the current bullish structure.

Investors will continue monitoring crude oil prices, geopolitical developments involving the US and Iran, and upcoming global macroeconomic data for fresh directional triggers. If global risk sentiment remains stable and volatility continues to soften, Indian equities could sustain their positive momentum in the coming sessions.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 witnessed a strong rebound session, closing higher by 298.15 points at 24,330.95 after recovering sharply from intraday lows near the 24,000 mark. The index formed a strong bullish candle on the daily chart, indicating aggressive buying interest at lower levels amid easing geopolitical concerns and softer crude oil prices. Broad-based participation across banking, financials, auto, and consumption stocks strengthened the rally, while improving global sentiment and short covering further accelerated momentum in the second half. Technically, the RSI is steadily moving towards the 60 zone, suggesting strengthening bullish momentum and improving trend strength. The index now approaches a crucial resistance zone near 24,521–24,638, and a decisive breakout above this range could trigger further upside towards fresh swing highs. On the downside, immediate support is placed at 24,141 followed by 24,024, which are likely to act as important accumulation zones in case of any short-term consolidation.

Bank Nifty

The NIFTY BANK index outperformed broader markets, surging 1,434 points to close at 55,981.05, driven by strong buying across private banks and PSU lenders. The index maintained a firm undertone throughout the session and ended near the day’s high, reflecting sustained bullish momentum and strong institutional participation. Technically, the sharp rebound from intraday lows and strong close indicate continuation of the prevailing uptrend. The RSI has decisively moved above the 50 mark, signalling improving momentum and renewed strength in banking counters. With market breadth remaining highly favourable, the banking index appears well-positioned for further upside if it sustains above the 55,700 zone. Immediate resistance is seen at 56,744 followed by 57,217, while support is placed at 55,218 and 54,745. Any dip towards support levels may continue to attract buying interest as sentiment in the banking space remains positive.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index extended its bullish momentum, rising 675.85 points to close at 26,392.75 amid broad-based gains across NBFCs, housing finance companies, and banking stocks. The index displayed strong relative strength throughout the session, supported by aggressive buying in heavyweight financial counters and a highly positive market breadth, with all constituents ending in the green. Technically, the index continues to trade with a strong upward bias and reflects improving sentiment within the financial space. Sustained buying momentum suggests the possibility of further upside if broader market conditions remain supportive. Immediate resistance is placed around 29,633–30,127, while support levels are seen near 28,033 and 27,538. The overall structure remains bullish, and any short-term pullback may be viewed as a buying opportunity as long as key support levels hold.

Sensex

The BSE SENSEX closed firmly higher by 940.73 points at 77,958.52, supported by robust buying across banking, financial, aviation, and consumption stocks. The index recovered strongly after initial volatility and maintained positive momentum through the session, reflecting improved investor confidence amid easing global risk concerns. Gains in heavyweight banking stocks helped offset weakness in select energy and infrastructure names, keeping the broader trend constructive. Technically, the index continues to trade with a positive bias and is gradually approaching a crucial resistance zone near 78,692–79,146. A sustained move above this range could strengthen bullish momentum further and open room for fresh highs. On the downside, immediate support is placed at 77,225 followed by 76,771, which are expected to provide near-term stability during any corrective phase.