The Indian stock market faced a notable downturn on Thursday, May 8, primarily due to escalating tensions between India and Pakistan, which significantly influenced investor sentiment. Although the trading day commenced with a promising start, a sudden drop in the last hour was triggered by the Indian government’s announcement regarding military operations targeting air defense systems in Pakistan. This development resulted in the Nifty 50 index closing down by 0.51%, settling at 24,273, while the Sensex fell by 411 points, also reflecting a 0.51% decline, ending at 80,334.
Market Sentiment Amid Rising Tensions
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, expressed that the overall sentiment in the Indian stock market remains cautiously optimistic. The Nifty 50 index faced resistance at the 24,400 mark, finishing the day closer to 24,250. Parekh identified 24,050 as a critical support level that the index needs to maintain to ensure stability in the market.
- Key Levels for Nifty 50:
- Support: 24,050
- Resistance: 24,500
Parekh noted, "The Nifty 50 is encountering resistance at the 24,400 threshold, with a downturn occurring post-lunch amidst ongoing border tensions. It closed near the 24,250 area, indicating a cautious market outlook as traders await further developments."
Bank Nifty Performance and Projections
The Bank Nifty index experienced significant volatility, encountering resistance near 54,900. Following heavy profit booking, it ended the session below the 54,400 level, reflecting a precarious market sentiment. Parekh highlighted that the index must remain above the 54,000 support zone for any consolidation to occur; otherwise, a downward trend could materialize.
- Key Levels for Bank Nifty:
- Support: 54,000
- Daily Range: 53,700 to 55,000
Stock Recommendations for Today
In light of the current market conditions, Parekh recommended several stocks for investors to consider, emphasizing potential opportunities for both buying and selling:
- Ujjivan Small Finance Bank: Buy at ₹42, Target ₹46, Stop Loss ₹40
- Genus Power: Buy at ₹289, Target ₹310, Stop Loss ₹278
- CG Power: Buy at ₹624, Target ₹660, Stop Loss ₹600
As the market navigates these turbulent times, investors are advised to stay informed and proceed with caution, particularly given the geopolitical landscape’s impact on trading activities.
