The Indian stock market faced a significant downturn on Thursday, May 8, largely influenced by escalating tensions between India and Pakistan. Initially, the market showed promise, but investor sentiment quickly soured after the Indian government confirmed military actions targeting air defense installations in Pakistan. By the end of the trading day, the Nifty 50 had slipped 0.51%, settling at 24,273, while the Sensex dropped by 411 points, closing at 80,334.

Market Analysis and Future Outlook

Investor uncertainty is likely to persist, according to Siddhartha Khemka, Head of Research at Motilal Oswal. He emphasized that market fluctuations would continue as stakeholders keep a close watch on developments concerning India-Pakistan relations and upcoming trade announcements from the U.S.

In terms of technical analysis, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that the Nifty 50 is currently exhibiting a weak trend with heightened volatility. He cautioned that if the index falls below 24,200, the next significant support level could be 23,850. Conversely, immediate resistance is anticipated at 24,450.

Insights on Bank Nifty

The Bank Nifty index also showed signs of struggle, as described by Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta. He pointed out the formation of a large red candle on the daily chart, suggesting notable selling pressure at elevated levels. Key resistance levels for the Bank Nifty are set at 55,000 and 56,000, while crucial support is identified at 53,890.

Stock Recommendations Under ₹100

Despite market volatility, experts have identified promising stocks for investors looking to make strategic buys. Here are three stocks recommended for today’s trading session:

• Ujjivan Small Finance Bank

  • Buy Price: ₹42
  • Target Price: ₹46
  • Stop Loss: ₹40

• IDFC First Bank

  • Buy Price: ₹66
  • Target Price: ₹70
  • Stop Loss: ₹63.50
• Restaurant Brands Asia (RBA)
  • Buy Price: ₹76.40
  • Target Price: ₹80
  • Stop Loss: ₹75

These selections come from seasoned analysts like Vaishali Parekh of Prabhudas Lilladher, Mehul Kothari of Anand Rathi, and Anshul Jain from Lakshmishree Investment and Securities, all of whom emphasize the potential for gains in these stocks despite current market conditions.

As investors navigate this turbulent environment, keeping an eye on geopolitical developments and market indicators will be crucial for making informed decisions.