Udaipur, May 5, 2025: Benchmark indices kicked off the week on a strong note, extending their upward momentum, supported by renewed foreign institutional inflows and improved market sentiment fuelled by falling crude oil prices. The Nifty opened higher and traded within a range throughout the session, eventually closing at 24,461, up 0.47%. The broader markets outperformed, with the BSE Midcap index rising 1.45% and the BSE Small Cap index gaining 1.23%.

Brent crude prices is placed around $60 per barrel, marking a nearly 20% decline year-to-date, providing relief to the current account at a time when export growth remains subdued due to ongoing tariff-related uncertainties. With the exception of Bank Nifty and PSU Banks, all sectoral indices ended in the green, led by strong performances in the Auto and Energy sectors.

Nifty Outlook

Index traded with positive bias and closed with gains of 0.5%. It has formed a bull candle which remained enclosed inside previous session price range signaling consolidation with positive bias.

Going ahead, Nifty is expected to extend last 6 sessions consolidation in the range of 24,600-23,800. A close above 24,600 will open further upside towards December 2024 high of 24,850 in the coming sessions. Volatility is expected to remain elevated amid geo-political conflict, Tariff related development and the progress of the Q4 earnings season.

Dips if any in the coming sessions should be used as buying opportunity with key support placed at 24,000-23,800 levels being the confluence of the last 2 weeks lows and the previous major breakout area placed around 23,800 levels.

Bank nifty Outlook

Bank Nifty formed a small bear candle with a lower high and lower low signaling continuation of the consolidation. Index is seen consolidating in a 2000 points range in the last 6 sessions after the recent strong rally of 5500 points or 11% in the preceding 6 sessions.

Key observation is that the index in the last 8 sessions is trading in a channel as can be seen in the adjacent chart. We expect it to extend the consolidation in the range of 54,000-56,000, thus working off the overbought conditions created by the recent sharp rally.

A sustained move above recent high of 56,098 could trigger further upside toward the 56,800 levels in the coming weeks. On the downside, key support is seen between 54,000-53,500, which corresponds to the gap-up region and the previous significant breakout zone. Dips any in the coming sessions towards the support area should be used as a buying opportunity.

Attributed to Bajaj Broking Research