Market Wrap

Indian equity markets traded in a volatile but resilient manner on 8 May 2025, with the Nifty moving within a broad 200-point range before ending almost flat near 24,327. Despite intraday swings, the index managed to hold above its crucial 50-day moving average, indicating that bullish sentiment remains intact at lower levels. Broader market participation continued to stay healthy as the Nifty Midcap 100 touched fresh record highs, reflecting sustained investor interest beyond frontline stocks.

The auto sector emerged as the strongest performer during the session. The Nifty Auto index confirmed a bullish cup-and-handle breakout on daily charts, while the RSI crossing above the 60 mark signaled strengthening momentum across the sector. Buying interest in autos, combined with strength in select midcap counters, helped the market absorb bouts of profit-booking seen during the day.

Global sentiment also remained supportive for equities worldwide. Major indices such as the S&P 500, Nasdaq, Nikkei, and Kospi traded near record highs, reflecting strong global risk appetite. Japan’s Nikkei surged over 5.5% amid optimism around easing trade tensions and improving economic expectations. Meanwhile, Brent crude corrected sharply, falling nearly 11% from recent highs in May, providing relief for import-heavy economies like India. Geopolitical developments surrounding U.S.–Iran negotiations, however, continued to keep investors cautious.

What's Ahead

Markets are likely to remain highly sensitive to global developments and macroeconomic cues in the coming sessions. Investors will closely monitor crude oil prices, global bond yields, foreign institutional investor activity, and updates related to U.S.–Iran negotiations, as these factors could influence short-term market direction and risk sentiment.

Technically, Nifty’s immediate support zone is placed near 24,200–24,100, while resistance levels are seen around 24,530, followed by 24,600 and 24,750. With broader markets still showing relative strength and global equities hovering near lifetime highs, any stability in geopolitical conditions could support another breakout attempt toward higher levels.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 remained largely range-bound and ended almost flat at 24,326.65, indicating consolidation after the recent upward move. Although the index witnessed profit booking in heavyweight IT and FMCG stocks during the final phase of trade, it managed to hold above crucial short-term support zones, reflecting underlying bullish resilience. The RSI hovering near the 60 mark suggests that positive momentum is still intact, with buyers continuing to defend declines. Technically, sustaining above 24,137–24,019 could keep the broader uptrend active, while a decisive move above 24,517 may open the path toward 24,634 and higher levels in the near term. However, failure to hold immediate support may trigger short-term consolidation with stock-specific volatility likely to remain elevated.

Bank Nifty

The NIFTY BANK index closed marginally higher at 56,047.40 after a volatile but stock-specific session, indicating gradual improvement in banking sector sentiment. The index traded within a broad range and witnessed better buying interest in the second half, largely supported by strength in select private banking names. Importantly, the RSI has moved above the 50 level, signaling improving momentum and a potential continuation of recovery if buying sustains. From a technical perspective, immediate support is placed near 55,284–54,812, while resistance is seen at 56,811 followed by 57,283. A breakout above the resistance zone could strengthen bullish momentum further, whereas inability to sustain above 56,000 may keep the index trapped in a consolidation range in the near term.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index ended modestly higher at 26,449.50, supported by strong gains in insurance, capital market, and diversified financial stocks. The broader undertone remains constructive as buying interest continues across selective financial counters despite weakness in NBFC heavyweights like Bajaj Finance and Cholamandalam Finance. Positive market breadth within the index also reflects improving participation across the financial space. Technically, the index continues to trade with a positive bias, and sustained momentum above current levels could support a move toward the resistance zone of 29,761–30,284 over the medium term. On the downside, immediate support is placed near 28,073–27,551, which is expected to act as an important demand area during any corrective phase.

Sensex

The BSE SENSEX closed lower by 114 points at 77,844.52 amid weakness in IT, FMCG, and select financial heavyweights, reflecting a cautious undertone in large-cap stocks. Despite the negative close, the index managed to avoid deeper losses due to strength in auto, metal, and power counters, indicating rotational buying within sectors. The broader technical structure remains stable as long as the index holds above key support levels. Immediate support is placed near 77,111–76,657, while resistance is seen around 78,578 followed by 79,032. A sustained move above resistance could revive bullish momentum and push the index toward fresh highs, while continued profit booking in heavyweight sectors may keep the market range-bound in the short term.