Indian stock market: Indian equities remained under pressure on Friday, May 8, as escalating geopolitical tensions following reported Iran-US clashes near the Strait of Hormuz weighed on investor sentiment, dragging both benchmark indices down by more than 0.50%.
The Nifty 50 declined 0.55% to settle at 24,193, while the Sensex dropped 0.67% to close at 77,321. Despite sharp intraday swings, both indices managed to post weekly gains of over 0.70%. Broader markets delivered a mixed performance, with the Nifty Smallcap 100 advancing 0.22%, whereas the Nifty Midcap 100 edged lower by 0.15%.
Stock market outlook for next week
According to Ponmudi R, CEO – Enrich Money, markets are likely to remain highly volatile in the coming week, with geopolitical developments continuing to dictate investor sentiment.
“Market participants will closely track updates surrounding the ongoing U.S.–Iran tensions, particularly Iran’s response to the latest U.S. proposals and further developments concerning the Strait of Hormuz. Donald Trump said Washington is expecting Tehran’s response later tonight on the proposal aimed at resolving the conflict. Any indication of diplomatic progress could boost market sentiment and risk appetite, while renewed military tensions or a collapse in negotiations may spark another wave of risk aversion across global markets,” Ponmudi said.
Key technical levels to watch out for next week –
Sensex
On the Sensex outlook, Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited, said that from a technical standpoint, the index has shown a strong breakout with sharp upward momentum, indicating a clear shift in near-term trend in favour of bulls.
“Key technical levels suggest that support is placed in the 76,800–77,000 zone, which is likely to act as a demand area on declines, while resistance is seen around 78,000–78,300, where upside may face initial supply pressure. The near-term outlook remains positive, supported by strong momentum; however, after such a sharp rally, some consolidation or volatility may emerge, especially considering ongoing geopolitical developments,” Tailor said.
Nifty 50
On the Nifty 50 outlook, Aakash Shah, Technical Research Analyst at Choice Broking, said that at the end of the week, the index settled at 24,176.15, registering a gain of 178.60 points or 0.74%.
The index also corrected nearly 300 points from the weekly high, resulting in the formation of a long upper wick candle, which indicates profit booking and selling pressure emerging at higher levels.
“Overall, the price action suggests that the index continues to maintain a positive undertone, although resistance near higher levels is restricting further upside momentum. On the upside, resistance levels are placed at 24,500 and 24,600. On the downside, support is seen at 24,000 and 23,800. A breakdown below 23,800 could result in increased selling pressure. Given the current market structure, traders are advised to remain disciplined and adhere to strict stop-loss strategies amid ongoing volatility,” Shah said.
Bank Nifty
On the Bank Nifty outlook, Shah added that the on the daily chart index briefly slipped below its 20-DEMA and the 50-day EMA, signalling weakness in short-term momentum and persistent selling pressure at higher levels.
“In the near term, immediate downside support is placed in the 54,600–54,200 zone in case selling pressure re-emerges. On the upside, 56,400 acts as immediate resistance, while 56,800 stands as the next key supply zone. From a momentum standpoint, the weekly RSI at 45.75 indicates subdued momentum with a neutral-to-negative bias. However, failure to reclaim higher levels may keep the index under short-term corrective pressure. Traders are advised to remain cautious and follow disciplined risk management while closely tracking key levels for the next directional move,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
