The Indian stock market experienced a downturn on May 6, 2025, largely influenced by escalating tensions between India and Pakistan and unfavorable global market signals. The Nifty 50 index dipped by 0.33%, closing at 24,379.60 points, down from 24,461.15 points from the prior day. Similarly, the BSE Sensex fell by 0.19%, finishing at 80,641.07 points, compared to its previous close of 80,796.84 points.
Market Overview: Investor Sentiment Dims
Investor sentiment has taken a hit due to ongoing geopolitical tensions and global uncertainties. The cautious mood among investors reflected in the market’s performance, with both major indices unable to maintain their previous highs.
- Nifty 50: Closed at 24,379.60 points
- BSE Sensex: Closed at 80,641.07 points
- Market Trends: Overall decline of 0.33% (Nifty) and 0.19% (Sensex)
Technical Insights from Vaishali Parekh
Vaishali Parekh, the Vice President of Technical Research at Prabhudas Lilladher, provided crucial insights on the current market conditions. She pointed out that the Nifty 50 is encountering resistance around the 24,500 level and is currently in a precarious position.
Key Support and Resistance Levels
- Support for Nifty 50: Estimated at 24,200 points
- Resistance for Nifty 50: Expected at 24,600 points
- Bank Nifty Range: Anticipated between 53,700 and 54,800 points
Parekh remarked, "The Nifty index has been struggling against resistance at the 24,500 mark, making it crucial for investors to stay alert. With geopolitical tensions simmering, the market’s mood has turned cautious." She emphasized the importance of sustaining the 200-period moving average at 24,050 for stability.
Bank Nifty Performance
The Bank Nifty faced profit booking, resulting in a decline to the 54,300 level, with a loss exceeding 600 points. Parekh noted that for a breakout to occur, the index must decisively surpass the 56,000 threshold.
Daily Trading Outlook
- Nifty 50: Support at 24,200 points, resistance at 24,600 points
- Bank Nifty: Daily trading range between 53,700 and 54,800 points
Stock Recommendations from Vaishali Parekh
For those considering trading strategies, Parekh has outlined three stock recommendations for today:
-
Hindustan Unilever Ltd.
- Action: Buy
- Entry Price: ₹2,378
- Target Price: ₹2,500
- Stop Loss: ₹2,328
-
DLF Ltd.
- Action: Sell
- Entry Price: ₹676
- Target Price: ₹660
- Stop Loss: ₹683
- IDFC First Bank Ltd.
- Action: Sell
- Entry Price: ₹66
- Target Price: ₹62
- Stop Loss: ₹68
Conclusion: Navigating Market Volatility
As the market grapples with external pressures and internal dynamics, investors are urged to keep a close watch on the key support and resistance levels highlighted by experts like Vaishali Parekh. Staying informed and agile in trading strategies will be crucial in navigating the current volatility in the Indian stock market.
