Trade Setup For May 8: Nifty Finds Key Support At 24,050–24,250 Amid India-Pakistan Conflict
The key support for NSE Nifty 50 remains in the zone of 24,050–24,250, amid the escalating military tensions between India and Pakistan, stock market analysts said after the market hours on Wednesday.
The support level seen is 24,250 on the downside, whereas the key resistance remains at 24,500, according to Aditya Gaggar, director of Progressive Shares Brokers.
Notably, the market had opened significantly lower on Wednesday, hours after India targeted nine terrorist bases in Pakistan and Pakistan-occupied Kashmir in precision strikes. However, the investor sentiment eased as the trading progressed, with the benchmark indices settling the day with gains.
The NSE index formed a a big bullish candle on the daily chart, indicating buying interest at lower levels, according to Hrishikesh Yedve, assistant vice president at Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.
The analyst said that the index is still struggling to cross the crucial resistance zone of 24,590. "A sustained move above 24,590 could trigger an extended rally towards the 24,800–24,850 levels," Yedve said.
The key support on the downside is placed near the 200-Day Simple Moving Average, which is close to 24,050, he added.
The Bank Nifty, another keenly tracked index, faces immediate resistance at 55,000, followed by 56,000, the analyst said. On the downside, the support lies at 53,890, he noted.
Market Recap
India's benchmark equity indices reversed a one-day decline to close higher on Wednesday.
The NSE Nifty 50 closed 34.80 points, or 0.14% higher at 24,414.4, while the BSE Sensex ended 105.71 points, or 0.13% up at 80,746.78. Intraday, the Nifty rose as much as 0.29% to 24,449.6, while the Sensex jumped 0.25% to 80,844.63.
FII/DII Activity
Foreign portfolio investors stayed net buyers of Indian equities for the 15th straight session on Wednesday, as they bought stocks worth Rs 2,585.86 crore. The confidence shown by the overseas investors in Indian equities amid the escalating India-Pakistan tensions.
Domestic institutional investors turned net buyers after being net sellers for a day, as they mopped up equities worth Rs 2,378.49 crore, according to provisional data from the National Stock Exchange.
Global CuesÂ
Markets in Japan and Australia were trading on a mixed note as US Federal Reserve signaled that the central bank is in no hurry to reduce rates amidst uncertainty over tariff impact. The Nikkei 225 and KOSPI were trading 0.34% down, while S&P ASX 200 was 0.02% higher as of 6:41 a.m.
On Wednesday, the Dow Jones Industrial Average and S&P 500 ended 0.70% and 0.43% higher, respectively. The Nasdaq Composite ended 0.27% higher.
The brent crude was trading 0.11% down at $61.05 a barrel. The dollar index was trading 0.20% higher at 99.81 as of 6:43 a.m. The Bloomberg spot gold was trading 0.77% higher at $3,390.26 an ounce.
The GIFT Nifty was trading 0.23% higher at 24,380.00 as of 6:44 a.m.
F&O CuesÂ
Nifty May Futures up by 0.17% to 24,472 at a premium of 58 points.
Nifty May futures open interest down by 2.72%.
Nifty Options May 8 Expiry: Maximum call open interest at 24,500 and maximum put open interest at 24,300.
Put-Call ratio at 0.74, with highest change in Put open interest at 24,300.
Securities in ban period: CDSL, RBL Bank, Manappuram Finance.
Major Stocks In The NewsÂ
Jindal Drilling: The company secured a three year contract from Oil and Natural Gas Corp. for the deployment of their rig Jindal Explorer at an Effective Day Rate of $35,138.71, with the current contract ending in the first quarter of fiscal 2026 and the new contract commencing in the third quarter of the same fiscal.
Mahindra & Mahindra: The company in its business update reported a total production of 85,925 units in April, marking a 20.3% increase compared to the 71,445 units produced in the same month last year.
Coal India: The company signed a non-binding agreement with AM Green Ammonia for supplying renewable power to AM Green's green ammonia project in Kandla.
Currency MarketÂ
The Indian rupee declined 39 paise to close at 84.83 against the US dollar on Wednesday, according to Bloomberg data, amid escalating India-Pakistan tensions. The slip in the local unit comes ahead of the rate decision to be announced by the US Federal Reserve.
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