SOURCE : NEW18 NEWS
Last Updated:May 10, 2025, 12:58 IST
Market experts attributed the selloff to geopolitical concerns following Operation Sindoor
Nifty Prediction For May 12.
Indian equity markets closed sharply lower on Friday, May 9, amid escalating tensions between India and Pakistan. Both benchmark indices—Sensex and Nifty 50—fell over 1%. The Sensex dropped 880.34 points, or 1.10%, to 79,454.47, while the Nifty 50 lost 265.80 points to end at 24,008. The Nifty Bank index declined by 770.40 points, or 1.42%, settling at 53,595.25.
Outlook for Monday, May 12: Fundamental Views
Recommended Stories
Market experts attributed the selloff to geopolitical concerns following Operation Sindoor, India’s response to last month’s deadly terror attack in Pahalgam that killed 26 civilians. While the escalation caught investors off guard, analysts believe the tensions could be short-lived due to India’s strategic and economic advantage over Pakistan.
Vinod Nair, Head of Research at Geojit Financial Services, noted, “Despite the unexpected flare-up, the market sentiment hasn’t been severely dented. Most expect the situation to de-escalate quickly due to India’s stronger geopolitical positioning.”
Nifty Chart Pattern & Technical Indicators
Ajit Mishra, senior vice-president (research) of Religare Broking Ltd, said, “From a technical perspective, the Nifty is currently hovering around key moving averages across various timeframes, suggesting the potential for further downside. The immediate support is placed at 23,800, and a decisive break below this level could extend the decline toward 23,200. On the upside, any rebound is expected to encounter strong resistance in the 24,400-24,600 range.”
Looking ahead, heightened geopolitical tensions have substantially increased market volatility, as evidenced by the spike in the India VIX, it added.
The India VIX on Friday jumped 2.95 per cent to 21.63 per cent.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that a small green candle with a long upper shadow formed on the Nifty’s daily chart, indicating a potential downside breakout from the recent range. On the weekly chart, Nifty formed a bearish engulfing-type pattern, signaling a possible trend reversal. “If the weakness continues, Nifty could slide toward 23,600,” Shetti said, adding that immediate resistance stands at 24,200.
Rupak De, Senior Technical Analyst at LKP Securities, said Nifty has held above its 21-day EMA, but a decisive break below 23,900 could trigger more selling. “On the upside, 24,250 will act as immediate resistance. A close above this level may improve sentiment,” he added.
Ajit Mishra, SVP, Research at Religare Broking, flagged elevated geopolitical risk and high volatility, as reflected in India VIX at 21.01. “Investors should take a cautious, stock-specific approach and consider hedging strategies in the near term.”
Devarsh Vakil, Head of Prime Research at HDFC Securities, emphasized that Nifty’s short-term trend remains weak. “The 24,150–24,340 zone is now key resistance, while 23,850 may act as immediate support,” he said.
Key Events To Watch Out For In Upcoming Week
The upcoming week will be pivotal, marked by several key domestic triggers. Geopolitical developments, particularly the ongoing tensions with Pakistan, will continue to remain in focus.
On the macroeconomic front, investors will closely monitor the release of key data points including the Consumer Price Index (CPI), Wholesale Price Index (WPI), and trade figures for exports and imports. Additionally, the corporate earnings season will gather pace, with several major companies—such as PVR INOX, Tata Steel, Bharti Airtel, Cipla, GAIL, Hero MotoCorp, Tata Motors, Lupin, Godrej Industries, and BHEL—scheduled to announce their quarterly results.
- First Published:
May 10, 2025, 12:57 IST
